Kuldip Singh , J. - (1.) Special leave granted.
(2.) The question for consideration before the High Court was whether M/s. Bindal Agro Chemical Ltd., respondent in the appeals herein, was eligible and entitled to various incentives announced by the State Government to the entrepreneurs setting up new industries in the Raisen district of the State of Madhya Pradesh. The High Court decided the question in the affirmative and against the appellant. This appeal by the State of Madhya Pradesh is against the judgment of the Division Bench of the High Court dated October 9, 1990. We may briefly notice the facts. One Nand Vanaspati Indore was granted an industrial license dated January 18, 1971 under the Industrial (Development and Regulation) Act 1956 (the Act) for setting up a Vanaspati factory with a capacity of 50 tonnes per day. Nand Vanaspati installed the factory at village Balgarh, Tehsil Dewas. Subsequently, the Central Government by the order dated July 17, 1980 permitted the transfer of the said licence in favour of 5-S Ltd. Calcutta. Bindal Agro Chemical Ltd. (the respondent) purchased the factory from 5-S Ltd. in the year 1986 under the same license granted by the Central Government. The respondent further sought permission from the Central Government for the change of location of the factory from Dewas to Mandideep against the original industrial license dated January 18, 1981. The respondent never applied and obtained a new license for its Mandideep Unit.
(3.) In order to help to help industrialisation of backward areas the State Government by the notification dated October 16, 1986 announced various incentives to entrepreneurs. The incentives included the exemption from payment of sales tax, entry tax and grant of power subsidy and investment subsidy etc. The incentives were, however, subject to certain conditions. Para XIII-E of the Notification is as under. " The exemption under this notification shall not be available to the following the industrial units. ********** "A New industrial unit set up, by transferring shifting or dismantling or closing an existing unit within the State of Madhya Pradesh." ;