RAJESH BALIA,J. - (1.) HEARD learned Counsel for the parties.
(2.) COMMERCIAL Taxes Officer, Special Circle, Pali has filed this revision aggrieved with the order of the Rajasthan Tax Board, Ajmer dated 30th May, 1997 allowing the appeal of the respondent. The respondent which is a small scale industry engaged in manufacture of iron bars, angles and channels etc., made an application on 6.3.1995 before the District Level Screening Committee for grant of eligibility certificate for an expansion project. It has claimed the eligible fixed capital investment for computing the benefit of incentives available. The District Level Screening Committee (DLSC) held the unit to be an eligible expansion unit to avail incentive under the scheme but quantified the eligible fixed capital investment at Rs. 15,58,528. according to which investment in new building was taken at Rs. 4,89,075, in new plant and machinery qualified investment was taken at Rs. 8,22,945 and installation expenditure at Rs. 2,46,508, thus, in total Rs. 15,58,528 was quantified as Eligible Fixed Capital Investment. This was done vide order dated. 23.2.1996. Aggrieved with the quantification of eligible fixed capital investment for the purpose of quantifying incentive, the assessee filed an appeal before the Rajasthan Tax Board which has been allowed partly.
(3.) THE DLSC has confined the scheme of eligible fixed capital investment of new building to the reduced amount of Rs. 4,89,075 by observing that the total investment in new building is not confined to the expansion unit only but some amount has also been invested for constructing sheds etc. for the existing undertaking and therefore the assessee is not entitled to the entire amount invested in buildings but confined the eligible amount of expansion to the extent production has been increased namely by 39% of the total investment. The Board has found that there has been two reports, one from the Managing Director, DLS C. Pali dated 25.5.1995 according to which as against the claim of assessee the eligible fixed capital investment were certified to be Rs. 12,72,770 whereas as per the District Industries Officer, District Industries Sub -Center, Pali, the eligible fixed capital investment in the new buildings for expansion was Rs. 13,76,787 and held that though there was justification for not to allow that part of the investment which was made in the existing unit and did not concern the expansion unit or the expansion expenditure but there was no jurisdiction for the DLSC without considering the report about the value of the investment made in expansion unit only but by estimating the eligible fixed capital in proportion to increase in production.;