PEEKAY RE ROLLING MILLS PVT LIMITED Vs. SECRETARY TO GOVERNMENT FINANCE
HIGH COURT OF KERALA
Peekay Re Rolling Mills Pvt Limited
SECRETARY TO GOVERNMENT FINANCE
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(1.) Is the action of the Department in declining the appellant's request for exemption from payment of tax vide order dated October 21, 2000, legal and valid The learned Single Judge having answered this question against the writ petitioner, it has filed these two appeals. The learned counsel have referred to the facts and documents as appearing on the record of Writ Appeal No.991 of 2003. These may be briefly noticed.
(2.) On September 6, 1991, the appellant was registered as a medium scale unit by the Entrepreneur Assistant Unit of the Ministry of Industries. The appellant had initiated steps for setting up the unit for the manufacture of iron rods and bars. It had acquired the land in the year 1991. The factory building was erected. A power connection for the supply of 1500 KVA was sanctioned. The unit had started production on March 31, 1995. The sale of iron rods and bars is exigible to the levy of tax under the Kerala General Sales Tax Act, 1963. The appellant is registered as a dealer under the Act.
(3.) S.10 of the Act empowers the Government to exempt a class of dealers from the levy of tax. In exercise of the power under S.10, the Government issued a notification dated November 4, 1993. A copy of this notification has been produced as Annexure 2. The notification was published in the Government Gazette dated November 4, 1993. By this notification, exemption from payment of tax under the Act was granted to the small scale, medium as well as large - scale units. Detailed provisions defining the conditions of eligibility, extent of exemption and the period during which the benefit could be availed of, were laid down. One of the provisions specifically made in the notification was that the "aggregate exemption in respect of sales tax, purchase tax, surcharge and Central Sales Tax payable together shall not exceed 100% of the fixed capital investment in the unit.";
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