M.JAGANNADHA RAO - (1.) LEAVE granted.
(2.) THIS Civil Appeal is directed against the judgment of the Orissa High Court in O.J.C. No. 4056/1995 dated 14/05/1996, dismissing the writ petition filed by the appellants. The appellants are aggrieved by the Industrial Policy Resolution of 1959 of the State of Orissa which came into force from 1-12-1989 insofar as it restricted the benefit of deferment/exemption of sales tax to industries which had gone into commercial production after 1-4-1986 and denied such benefit to those which had gone into production before 1-4-1986. The Industrial Policy of 1989 in this behalf was notified by the Orissa Government under S.S.O. NO. 790/90 (Finance) dated 16-8-1990 issued under Section 7 of the Orissa Sales Tax Act w.e.f. 1-12-1989 to which we shall refer in detail later, we are concerned with rectum and large-scale Industrial units. The appellant-company was incorporated on 9-4-1979 for manufacture of Sponge Iron in one District of keanzar in the State of Orissa. The land was acquired and purchased on 4-4-1980 and the appellant proceeded to construct the factory. It went into commercial production w.e.f. 1-4-1984. The Industrial Policies in the Estate of Orissa with which we are concerned in this appeal are three policies. (i) the Policy of 1980, (ii) the Policy of 1986 and (iii) the Policy of 1989. (I)1980 POLICY : Interest-free loan for Sales tax paid,
(3.) IN the INdustrial Policy of 1980 which came into effect from 1-8-1980 it was stated that large and Medium INdustries would be entitled to reimbursement of entire cost of preparation of project/feasibility report subject to a certain maximum if a 25% cost is initially deposited and if the reports are obtained from approved agencies. Otherwise reimbursement would be after implementation of project. These industries, whether new or intending to expand or diversify shall be eligible for interest-free Sales-tax loan equivalent to the Sales tax paid within the State by the units during the first five years subject to an annual maximum limit of 10 per cent of the capital invested but not exceeding Rs. 20 lakhs per year. The loan shall be repaid after 10 years of each year's drawal. The Policy deals with various other benefits given to large and Medium industries not only in regard to Sales tax but in regard to electricity's charges, etc. The appellant availed of the abovesaid Sales-tax incentives when it went into commercial production with effect from 1-4-1984. In other words, the appellant was entitled to an interest-free Sales-tax loan as per the 1980 Policy for a period of 5 years subject to an annual maximum limit of 10 per cent of the capital invested but not exceeding Rs. 20 lakhs per year and the said loan could be repaid after 10 years of each year's drawal. (II) 1986 POLICY : Deferment of Sales Tax/Exemption. ;