- (1.) This batch of appeals has been preferred by small-scale industrial units which carry on the business of manufacturing edible oils in the State of jammu and Kashmir. The manufacture of edible oils was exempted from payment of sales tax under Exemption Notification No. SRO-93 dated 27-3-1991 which granted exemption to small-scale industrial units for the period 1-7-1990 onwards from payment of general sales tax under the Jammu and Kashmir General Sales Tax Act, 1962, provided that the goods manufactured were not of the kind specified in Annexure 'a' to the notification. Annexure 'a' consisted of two parts. The first contained details of the period for which exemption was to be granted and the extent of exemption. Thus 100% exemption was granted up to 31-3-1995, 50% till 31-3-1998 and 25% till 31-3-2000. The second part specified the excluded industries (which is referred to hereinafter as "the Negative List") which did not include edible oils. Consequently, the appellants before us were entitled to exemption under Notification No. SRO-93 of 1991.
(2.) On 19-1-1995 a government order was issued, being GO No. 10 of 1995, which enunciated the State's policy in respect of new units in the tiny/ small/medium/large-scale sector which would be established after the announcement of the new policy. Existing units were also given the option to continue with the package of incentive to the extent applicable for the remaining period of entitlement. The package of incentives included para 7 which reads as follows: "7.Gst/cst/additional toll tax on SSI Units, medium and largescale units (i) The purchase of raw materials by small-scale units shall be exempted from general sales tax except for the items which are on the negative List. (ii) GST exemption is also available to small-scale units on sale of finished goods till 31-3-2000 except for the items which are on the negative List. (iii) No GST would be charged on sale of finished goods manufactured by SSI Units. This concession is also available up to 31-3-2000. (vii) 'negative List' referred to in the above paras may be altered by the Government in the Industries and Commerce Department in consultation with the Finance Department. "
(3.) In other words instead of granting exemption at reducing percentages till 31-3-2000, the policy was to grant 100% exemption till that date. Para 19 of the government order, however, provided that the policy would come into force from the date of a notification.;