BALIA, J. - (1.) HEARD learned counsel for the parties.
(2.) THE assessee challenges the assessment order dt. 15th March, 2000 (An -nexure -9). The assessee -petitioner has constructed a new hotel which started operation w.e.f. 1.8.98 and came within the purview of Land and Building Tax Act w.e.f. 1.4.99. On that basis notice was issued u/S. 22 for securing information about the same. The assessee claimed during the assessment proceedings that 'tourism' has been declared to be an industry within the Slate of Rajasthan by notification issued by His Excellency Governor of Rajasthan on 4.3.89 (Annexure -2). The benefits to be extended to such industry were to be made known separately. Thereafter in pursuance of declaration of Industrial Policy, 1998 published by the Govt. of Rajasthan, a notification was issued on 27.5.98 in exercise of its powers u/S. 3 read with Section 21 of Rajasthan Land and Building Tax Act, 1964 by which the minimum limit in respect of land and buildingused for industry upto which no tax was payable was raised to Rs. 20 lacs and thereafter rates were prescribed on the slab basis from 1% to 1.5%. This notification related only to industrial land and buildings. Apart from prescribing separate rates for levying tax under the Rajasthan Land and Building Tax Act in relation to industrial land and buildings, it further exempted land and building of new industrial unit, which came into existence after 1.4.98 by commencing commercial production thereafter, but prior to 31st March, 2003. Said industrial land and buildings were exempted from payment of tax for a period of four years after the commencement of the commercial production.
(3.) IT was claimed by the assessee that since the tax liability on land and building commenced only after 1.4.98 and the new hotel building which is a tourism related project, is a part of the tourism industry. It started operation w.e.f. 1.8.98 that is to say after 1.4.98, it fulfilled the conditions of exemption under the said notification.;