RAJESH BALIA, J. - (1.) THIS revision is directed against the judgment dated May 21, 1998 passed by the Rajasthan Tax Board, Ajmer, whereby the respondent-assessee was held entitled to enjoy the benefit of deferment of payment of tax under the Rajasthan Sales Tax New Deferment Scheme, 1989 (for short "the Scheme of 1989") up to the limit of 90 per cent of its tax liability as a new very prestigious unit instead of 50 per cent of its tax liability as sanctioned by the State Level Screening Committee.
(2.) THE facts necessary for the purposes of this revision petition briefly stated are : that the respondent-assessee established a new industrial unit for the manufacture of cement at Shambhupura in District Chittorgarh. In this unit, the fixed capital investment is over Rs. 100 crores. It has been established in a Panchayat Samiti area, which is outside tribal sub-plan area. It commenced its commercial production on March 28, 1995. THErefore, it falls in the category of "new very prestigious unit" as defined in paragraph (ii) of clause 2 (i) of the Scheme of 1989. In the first instance, the State Level Screening Committee, vide its letter dated October 6, 1995, conveyed its decision dated September 1, 1995 that the respondent-assessee is eligible for the benefit of exemption from tax under Sales Tax Incentive Scheme, 1989, in the Central Sales Tax Act and deferment of tax under the Scheme of 1989 under the Rajasthan Sales Tax Act on the basis of a new very prestigious industrial unit on the sale of cement. In pursuance of the above finding, the Joint Director of Industries directed the Assistant Commercial Taxes Officer, IInd COR, Chittorgarh, to issue eligibility certificate to the respondent-assessee. It was also informed to the Assistant Commercial Taxes Officer that the eligible fixed capital investment was stated to be, subject to verification, Rs. 1,86,90,47,040. In compliance of the above direction, the Assistant Commercial Taxes Officer issued the eligibility certificate dated October 31, 1995 to the respondent-assessee certifying that the new industrial unit of the respondent-assessee is entitled to enjoy benefit of deferment of tax up to the limit of 50 per cent of its tax liability as per the Scheme of 1989. Thereafter, the respondent-assessee moved a rectification application for increase of its incentive benefit limit from 50 per cent to 90 per cent of its tax liability in terms of the criteria laid down in annexure C appended to the Scheme of 1989. The said application was rejected by the Assistant Commercial Taxes Officer vide its order dated May 21, 1997. The respondent-assessee challenged the order dated October 31, 1995 as also the order dated May 21, 1997 by way of filing an appeal before the Rajasthan Tax Board, Ajmer. The Rajasthan Tax Board, Ajmer, vide its order dated May 21, 1997 allowed the appeal filed by the respondent-assessee holding that the Assistant Commercial Taxes Officer has erred in restricting the benefit of deferment of tax under the Scheme of 1989 up to the limit of 50 per cent of the tax liability considering the new industrial unit of the respondent-assessee to be a large scale unit and not a "new very prestigious unit". It directed the Assistant Commercial Taxes Officer to issue a new eligibility certificate by rectifying the quantum of eligible amount of deferment to be 90 per cent of the tax liability under item 5 of annexure C appended to the Scheme of 1989.
(3.) IT is contended by Mr. S. M. Mehta, the learned Advocate-General appearing on behalf of the petitioner, that as per the Scheme of 1989, all large scale industrial units engaged in manufacturing of cement were ineligible for any benefit under the Scheme of 1989 in view of item No. 10 of the annexure B appended to the Scheme of 1989 containing the list of industries not eligible for sales tax deferment under the New Deferment Scheme. By S. O. No. 354/f-4 (8) FD/gr. IV/91-121 dated March 6, 1991, second proviso was inserted to clause 2 (j) of the Scheme of 1989; which remained in force until the date of commencement of commercial production by the respondent-assessee. IT was on March 6, 1991, second provisos to clause 2 (j) and clause 4 were inserted but no amendment was brought in annexure C, providing quantum of benefits enjoyable by the eligible industries under the scheme according to different classifications and subject to conditions made thereunder. No amendment was made in annexure B the list of ineligible industries for sales tax deferment under the New Deferment Scheme until December 13, 1996. Therefore, the extent of relaxation granted and the benefits extended in the case of large scale cement industries of all sorts must be confined to the benefits extended by the two provisos [second proviso to clause 2 (j) and second proviso to clause 4 of the Scheme of 1989] which were introduced simultaneously. It was also urged that vide notification dated June 13, 1994 with effect from June 15, 1994, the limit of exemption that could be claimed by a large scale cement plant outside tribal sub-plan area, having fixed capital investment of Rs. 100 crores or more was fixed at 50 per cent of the tax liability. Therefore, as on the date the respondent-assessee commenced its commercial production, it was not entitled to get the benefit except what was provided under second provisos to clause 2 (j) and 4 of the Scheme of 1989. The general provisions contained in annexure C appended to the Scheme of 1989 are applicable to all classes of eligible industrial units generally, which do not fall within the list of ineligible industries for sales tax deferment under the scheme and, therefore, those provisions contained in annexure C will not govern the case of large scale cement industries. It was further pointed out by the learned Advocate-General that if the large scale industries as defined in Note 1 appended to clause 2 (k) of the Scheme of 1989 is taken to be distinct and different from "new very prestigious unit" from other kind of new industrial units specified in clauses 2 (h) (i) and (ii) of the Scheme of 1989, in that event the cement industries which fall in the category of "pioneering unit", "prestigious unit" and "very prestigious unit" will not fall in the eligibility criteria at all. It is only by taking a liberal construction of the scheme that the prestigious units or very prestigious units which necessarily falls in the definition of the "large scale" industrial units also having the project cost exceeding Rs. 5. 00 crores, that such benefit can be extended to it. Therefore, a new industrial unit known as very prestigious unit by itself will not be entitled to any benefit, except as a large-scale industry. ;