- (1.) Leave granted.
(2.) The appeals are preferred against a common judgment of the orissa High court in five writ petitions. All the five writ petitions were filed by the respondent herein, Jagannath Cotton Company, wherein the question is whether the respondent is entitled to the benefit of exemption from sales tax under the Industrial Policy Resolutions of 1986 as well as of 1989. It also involves the question whether the process undertaken by the respondent, applying which he obtains cotton from waste cotton, can be called 'manufacturing' activity.
(3.) With a view to encourage the industrialisation of the State, the government of orissa published the Industrial Policy Resolution (dated 13/5/1986 in the Gazette of 11/6/1986. It provided several incentives to those establishing new industries in the State and also those who expanded their existing capacities. Inter alia, it provided for certain concessions in the matter of sales tax. In the case of village, cottage and small-scale industries, exemption from tax was provided on the purchase of raw material as well asthe sale of finished product whereas in the case of new medium and large- scale industrial units, the facility of deferment of payment of sales tax for a a particular period was provided. The State was divided into three zones having regard to their level of industrialisation. Zone A which was supposed to be the least industrialised area provided more incentives than Zones B and C. District Sambhalpur, wherein the respondent-industry is located, falls in Zone C. The provisions of orissa Sales Tax Act also appear to have been amended in tune with the said policy resolution as would be evident from Entry 30 (ff) referred to in the counter filed by the respondent in this court - but this is one of the aspects requiring clarification. Entry 30 (ff) seems to provide exemption from sales tax of the products of a small-scale industry set up on or after 1/4/1986 and starting commercial production thereafter inside the State subject to certain further conditions.;