V.K.GUPTA,J - (1.) THIS petition under article 226 of the Constitution of India has been filed by the petitioner, M/s. Tata Iron and Steel Co. Ltd. challenging the legality, validity and correctness of the order dated April 3, 2001, passed by respondent No. 2, the Commissioner of Commercial Taxes, Jharkhand, whereby, while exercising his suo motu revisional jurisdiction in terms of sub-section (4) of section 46 of the Bihar Finance Act, 1981, he set aside the order dated December 16, 2000 passed by respondent No. 3, the Joint Commissioner of Commercial Taxes, Jamshedpur, and directed respondent No. 4, the Deputy Commissioner of Commercial Taxes, Urban Circle, Jamshedpur, to cancel the exemption certificate issued earlier in favour of the petitioner. 2.
(2.) The brief facts leading to the filing of this petition may be stated as hereunder : The Government of Bihar in 1995 came out with an Industrial Policy Resolution which stipulated certain concessions to the newly set up industrial units in the State and granted concessions and exemptions to such units with a view to encouraging further industrialisation of various areas in the undivided State of Bihar and to attract new entrepreneurship by way of setting up new units and diversification of the existing units. Since Industrial Policy Resolution, 1995, was only by way of an "intention statement" of the State of Bihar and was more of a policy frame work, S. O. No. 479 dated 22nd December, 1995, was issued in terms of section 7 (3) of the Bihar Finance Act, 1981, granting exemption from payment of sales tax on purchase of raw materials utilised for sale of the finished products on certain terms and conditions contained in the notification itself. S. O. No. 58 dated March 2, 2000, was issued by the Government of Bihar, again in exercise of the power conferred upon it under section 7 (3) (b) of the Bihar Finance Act, 1981 whereby certain amendments in S. O. No. 479 dated December 22, 1995 were brought about. The preamble of S. O. No. 58 reads thus :- " In exercise of the powers conferred under sub-section (3) (b) of section 7 of the Bihar Finance Act, 1981 (Bihar Act No. 5 of 1981) the Governor of Bihar has reasons to believe that in the interest of industrial development of the State, it is essential to incorporate following amendments in the previous Notification S. O. No. 479 dated 22nd December, 1995, issued by the Department of Commercial Taxes. " The following clauses of S. O. No. 58 dated March 2, 2000 are relevant for our purposes : " New industrial unit" has been defined to mean such a new unit where production starts between September, 1995 and 31st August, 2000 and which has obtained a letter of permission, etc. , etc. Any unit where Rs. 500 crores or more has been invested in diversification would also be treated as a 'new unit' under the said notification and any unit which has obtained prior permission before 31st August, 2000 from the State Government and started production within five years from the date of such permission would also be treated as a 'new unit'. "
(3.) Clause 4 (c) of this notification being of utmost importance for our case may be reproduced in verbatim. It reads thus : " In case of diversification, these benefits shall be applicable only to such nature of commercial products which were not produced earlier by the unit and that after diversification the facilities available shall be to the extent of actual production only. " ;