STATE OF JHARKHAND Vs. AMBAY CEMENT

JUDGEMENT

(1.) This appeal is preferred by the State of Jharkhand through the Commissioner of Commercial Taxes, ranchi, Jharkhand and five others against the final judgment and order dated 15.1.2003 passed by the Division Bench of the High Court of Jharkhand at Ranchi in Writ Petition (T) No. 5712 of 2002 allowing and remitting back the same to the Joint Commissioner of Commercial taxes (Admn. ) , Dhanbad Division, Dhanbad for passing a fresh order in view of the observations and directions made in the judgment. The short facts are as follows:

(2.) The erstwhile Government of Bihar came out with an Industrial Policy 1995 providing certain incentives to the newly set up industrial units in the small scale sector. Clause 16.1 and Clause 6.2 of the said Industrial Policy provided for exemption from Sales Tax on purchase of raw material and exemption of sales Tax on sale of finished products. The commercial Taxes Department of the State government issued statutory Notifications for implementation of the said Industrial Policy vide s. O. 478/479 dated 22.12.1995. The said industrial Policy was amended vide Notification no. 5680 dated 27.8.1997 for providing certain reliefs to the pipeline industries. The In- to provide extension of time limit for the date of start of commercial production in case of pipe line industries where substantial investment capital has been made subject to the condition that such pipe line industrial unit shall seek prior permission of the State Government in the industries Department before 31.8.2000 and commercial production shall be started within five years from the date of obtaining such prior permission. On 2.3.2000, the Commercial taxes Department issued Notification No. S. O. 57 and 58 dated 2.3.2000 pursuant to the above amendment in the Industrial Policy 1995. As per the Industrial Policy 1995 and Notifications issued for the implementation of the Industrial policy 1995, that is, S. O. 478 and S. O. 479 dated 22.12.1995 newly set up small scale industries were entitled to tax free purchase of raw material as also tax free sale of finished products provided that the date of start of such industries were between 1.9.1995 and 31.8.2000. The statutory Notifications S. O. 57 and S. O. 58 dated 2.3.2000 amended the notification Nos. S. O. 478 and S. O. 479 dated 22.12.1995 accordingly to provide for prior permission of the Industries Department which will have to be obtained by the pipe line industrial unit before 31.8.2000 for availing of the tax incentive under Notification Nos. S. O. 478 and S. O. 479 of 22.12.1995.

(3.) It is seen from S. O. '478 and S. O. 479, as amended vide S. O. 57 and S. O. 58 dated 2.3.2000 that industrial units having obtained registration from Industries Department/industrial area Development authority/director of industries or having obtained from competent authority of the Government of India Registration certificate/letter of Intent etc. , and desirous of availing tax incentive benefit under industrial Policy 1995 will also obtain prior permission of the State Government in the industries Department before 31.8.2000.