- (1.) ALL these writ petitions are directed against the impugned notification dated 7/5/1990 issued by the Government of Rajasthan in exercise of the powers conferred by Sub-section (v) of Sec. 8 of the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956) amending the earlier notification dated 6/7/1989, whereby the petitioners have been rendered ineligible for Sales Tax Incentives and, therefore, the petitioners have also prayed for quashing of the consequential orders and have sought a direction against the respondents to give benefit of Sales Tax Incentive Schemes of 1987 and 1989 and that they may be held entitled for the benefit of the incentive scheme.
(2.) ALL these writ petitions involve a common grievance in identical circumstances and are essentially directed against the impugned notification dated 7/5/1990, referred to hereinabove. We, therefore, propose to decide all these seven writ petitions by this common judgment and order. In exercise of the powers conferred by Sub-section (v) of Sec. 8 of the Central Sales Tax Act, 1956, the Government of Rajasthan having been satisfied that it was expedient in the public interest to frame and notify the Sales Tax Incentive Scheme for Industries 1987 and exempt the industrial units from payment of tax on sales made in the course of inter-State trade and commerce of the goods manufactured by them within the State, notified such Sales Tax Incentive Scheme vide notification dated 23/5/1987, which was to come into operation with effect from 5/3/1987 and to remain in force upto 31/3/1992. On 6/7/1989, again a notification was issued in exercise of the powers conferred by sub-section (2) of Sec. 4 of the Rajasthan Sales Tax Act, 1954, whereby the Government notified "sales Tax New Incentive Scheme for Industries, 1989" and exempted the industrial units from payment of tax on sales of goods manufactured by them within the State in the manner and to the extent for the period as exempted by this notification. The operation of this New Incentive Scheme was deemed to have come into force with effect from 5/3/1987 and was to remain in force upto 31/3/1992. The relevant provisions under the Scheme are as under: - "new Industrial Unit" means an industrial unit which commences commercial production during the operative period of the New Incentive Scheme but will not include: (i) an industrial unit established by transferring or shifting or dismantling an existing industry; and (ii) an industrial unit established on the site of an existing unit manufacturing similar goods. "eligible Area" means area mentioned in Annexure/8 of this notification and in Annexure/a at item No. 7 in category No. 2, Bharatpur is included. "banned Area" means the areas as under: (i) The Urban Agglomeration Limits of Jaipur and Kota, and (ii) Municipal Limits/uit limits of all towns: Provided that industrial units located in the industrial areas developed/financed by the State Government or its Corporation will be eligible for incentive as admissible to the category of districts, in which the particular area is situated: Provided further that the locational restrictions shall not apply to sick units as defined in clause 2 (b ). "eligible Industries" means industrial State in Annexure/8 to this notification will not eligible in Sales Tax Scheme. " Annexure 'b' is the list of industries, which were not eligible for sales tax incentive scheme. Under the New Incentive Scheme 20 categories of industries were enlisted in this list under Annexure 'b' and, it has been submitted on behalf of the petitioners that the incentive schemes were intended to give protection to the specified categories of industries by giving them tax concession so that they may be in a better position to compete in the market and with the view that more industries may be set up. The above schemes were widely published and notified so that more and more persons may set up new industries. It has been submitted that the petitioners believing upon the promise held out in these incentive schemes for Sales Tax exemption, started to set up new oil industries. The case of M/s. Lokendra Industries (DBCW No. 2562/1990) is that the industrial plot was purchased in the year 1983 and a sale agreement was also executed, but due to financial problems and other problems, it could not utilise and start the industry after publication of the notification of the aforesaid scheme and the petitioner with a view to take advantage from the same, again applied to the RIICO for renewal in the year 1987. The renewal was granted on 21/11/1989. The petitioner deposited the penalty, development and other charges in respect of the plot in question. The petitioner installed its industry and was ready in April, 1990, but in want of electric connection, production could not start. The petitioner deposited a sum of Rs. 1,02,283. 65 with RIICO and invested Rs. 3,97,459. 53 in the construction of building and for running oil industry and also invested a sum of Rs. 10,29,981. 16 for machines and, thus, invested a total sum nearly Rs. 16 lacs in completing the works and setting up of plant by the end of April, 1990. However, for non-availability of electric connection production could not be started and the same was started from 11/6/1990. The petitioner then approached the respondents for granting exemption in the incentive scheme and, it was conveyed to the petitioner by the non-petitioners that the oil industries have been withdrawn from the exemption and the oil industries are not exempted under the New Sales Tax Incentive Scheme. The petitioner came to know that a notification dated 7/5/1990 by way of amendment in the scheme i. e. Incentive Scheme for Industries 1989 had been issued and after existing Entry No. 20 two entries were added as Entry No. 21 and 22 in the list of industries which were not eligible for Sales Tax Incentive under Annexure/b, referred to hereinabove. The newly, added industries at No. 21 and 22 are as under: - 21. Oil extracting or manufacturing industry. 22. Cotton ginning industry. The same amendment was also made in the Sales-Tax Incentive Scheme for 1987. The text of this notification dated 7/5/1990, is reproduced as under: - Notification Jaipur 7/5/1990 In exercise of the powers conferred by sub-section (5) of Section 8 of the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956), the State Government being satisfied that it is expedient in the public interest so to do, hereby makes the following amendment in this department Notification No. F. 4 (35) FD/gr. 1v/87, dated July 6, 1989 (as amended from time to time) namely: AMENDMENT In annexure 'b' of the Sales Tax Incentive Scheme for Industries, 1989 list of industries not eligible for sales tax incentives after existing Entry No. 20 the following shall be added : "21 Oil Extracting or manufacturing Industry. 22. Cotton Ginning Industry. "
(3.) ON behalf of respondents No. 1 to 3 reply has been filed, wherein the issue of the notification of the Sales Tax Incentive Scheme for Industries 1987 and 1989 operative from 5/3/1987 has not been disputed, but the other averments regarding investing and setting up of the plant by the end of April 1990 and the starting of production from 11/6/1990, have not been admitted for want of knowledge and, it has been pleaded that the petitioner may be put to struck proof of the same. It has been submitted that the petitioner had submitted an application under the Sales Tax Incentive Scheme on 29. 08. 1990, whereas the oil extracting industries were declared to be not eligible for sales tax incentive scheme on 7/5/1990 and the petitioner, thus, ceases to be entitled for the benefit of the Sales Tax Incentive Scheme. In Aditya Oil Mills (D B CW No. 5189/1990) similar averments regarding the publication and notification of the Incentive Scheme for Sales Tax Exemption have been made, and it has been stated that the petitioner was allotted industrial plot in old industrial area, Bharatpur and lease agreement was granted on 29/9/1989 by RIICO. The petitioner deposited the development charges, lease money and other amounts and invested heavy amount on the construction of building for running industries for a sum of Rs. 8,09,761/- on the machines installed for running the oil industries and in all a sum of nearly Rs. 15 lacs was invested. The petitioner completed all the works and set up the plant in the month of March, 1990: but on account of non-availability of electric connection, the industry could not be started prior to 1/5/1990, when it was so started by generator and the electric connection was granted to the petitioner on 15/5/1990 and since then the petitioner is running an oil industry. Thereafter he applied for the grant of exemption from sales tax under the aforesaid incentive scheme. Reply has been filed on behalf of respondents No. 1 to 3 on more or less the same lines as mentioned above, in the case of M/s. Lokendra Industries. The averments regarding the lease agreement dated 29/8/1989 has been denied and, it has been further submitted that the petitioner did not approach respondents No. 1 to 3 for grant of eligibility certificate and that there is no material placed on record by the petitioner to show that he had approached respondent No. 2 for grant of such eligibility certificate. It has been submitted that the petitioner neither applied under the Sales Tax Incentive Scheme for Industries 1987, nor has he applied under the Sales Tax New Incentive Scheme for Industries, 1989 and, therefore, the petitioner has no legal right to approach this Court under Art. 226 of the Constitution of India. The factual averments made in para 5 of the writ petition that the industry was started on 1/5/1990 by the generator and electric connection was granted to the petitioner on 15/5/1990 have not been denied. ;