Sudhir Agarwal, J. - (1.) Petitioner, by way of filing this writ petition under Article 226 of Constitution, has challenged demand notice dated 5th September, 1985 issued by Pradesiya Industrial and Investment Corporation of U.P. Limited (hereinafter referred to as 'PICUP'), whereby it has required petitioner to pay Rs.80,57,583/-, latest by 15th September, 1985, along with interest from the date of default to date of payment, failing which, it will be free to proceed according to provisions of Sales Tax Loan Scheme (hereinafter referred to as 'STLS').
(2.) Brief factual matrix necessary to give backdrop of dispute is that State of U.P. decided to grant various incentives for establishment of new industries in State of U.P. One of the measures approved is, grant of interest free loan in lieu of sales tax on finished products sold within the State, for certain periods, after the start of production as enunciated in Government Order dated 10th November, 1972. It was termed as scheme for grant of interest free loan to industries i.e. 'STLS'. PICUP was chosen as agent of State of U.P. for implementation of this scheme. The scheme had two parts, one relating to new units, and second relating to units carrying out substantial expansion.
(3.) The term new unit was defined in scheme as under; (vi) New Unit means a new industrial unit, registered under the Factories Act, which has gone, or goes into production on or after January 1, 1972. Provided that an existing unit would not be treated as a new unit simply because its ownership passes on to a new organisation or the existing organisation undergoes structural change: Provided also, that expansion of existing unit will not be covered under this part of the Scheme.;