ANIRUDDHA BOSE, J. - (1.) Kanchan Oil Industries Ltd. (KOIL) is a company engaged in the business of, inter-alia, manufacture and sale of vanaspati. The original business of this company was manufacture and sale of solvent extracted vegetable oil. The company decided to expand its activities for manufacture of vanaspati in the year 1991. The Government of West Bengal has promulgated several incentive schemes to encourage setting up of new industries, and such schemes primarily envisage granting of sales tax concession to the entrepreneurs for setting up new manufacturing facilities. Some of these concessions have been extended to expanded portion of an existing unit.
(2.) In the present case, dispute is over entitlement of KOIL get concession under the provisions of Section 41 of the West Bengal Sales Tax Act 1994 and under the provisions of the West Bengal Industrial Promotion (Assistance to Industrial Unit) Scheme 1994. KOIL had applied on 23 June 1995 for registration of the expanded part of the industrial unit meant for manufacture of vanaspati. There is provision stipulated under the provisions of Section 41 of the West Bengal Sales Tax Act, 1994 for remission of sales tax. KOIL applied for and availed benefit under the 1994 Scheme, which provides for payment of ninety per cent of the amount of sales tax paid by a registered dealer similar to that of KOIL as industrial promotion assistance. This scheme came in force in 1 April 1994 and was to remain in force till 31 March 1999.
(3.) As regards application of KOIL for remission of sales tax upon expansion of the existing industrial unit in terms of section 41 of the said Act, eligibility certificate was issued to KOIL on 9 April 1998. This eligibility certificate entitled KOIL to exemption of sales tax on purchase of raw materials for six years as also sales tax remission for sale of finished goods for six years subject to percentage ceiling of gross value of additional fixed capital asset of the project.;