- (1.)This appeal is directed against the judgment and order passed by the High Court of Judicature of Jharkhand at Ranchi in Writ Petition No. 4646 of 2002, dated 08.01.2003. By the impugned judgment and order, the High Court has confirmed the orders passed by the Commissioner of Commercial Taxes, Jharkhand in Revision Case No. CC(S) 388 of 2001. The State of Bihar has introduced Industrial Incentive Policy, 1993, where a provision is made to grant sales tax exemption on purchase of raw materials for certain industries enumerated in Annexure V(2) of the said policy on the condition, that, the raw materials re directly used for manufacturing finished goods. One of the units mentioned in Annexure V. is iron and steel based industry.
(2.)Pursuant to the aforesaid industrial policy, the State Government in exercise of its powers under Section 7(3)(b) of the Bihar Finance Act, 1981 (for short 'the Act') has issued Notification No. 1995 dated 04.04.1994, whereby the State Government has granted exemption from payment of sales tax on purchase of raw materials used directly in the manufacture of goods. The exemption granted under the aforesaid Notification is for 46 different categories of industries including iron and steel industry. The exemption under the said Notification is available for a period of 7 years from the date of commencement of the commercial production.
(3.)To avail the benefit under the aforesaid Notification, the Appellant-industry had approached the Deputy Commissioner of Commercial Taxes, Dhanbad Circle, Dhanbad for the grant of exemption inter alia for three commodities (1) pencil ingots, (2) sheets (3) agricultural and household implements. The aforesaid Commissioner after considering the application so filed by the Appellant had issued a certificate in form B-l, dated 30.04.1997. In the said certificate it is clearly stated that the raw materials that are exempted from sales tax are "all types of iron and steel material (including defective cutting and rejects)."