NAGARJUNA FERTILIZERS CHEMICALS LTD Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioner which was involved in manufacture and sale of urea had been given a deferral of payment of sales tax, under the Target 2000 New Industries Policy of the Government of Andhra Pradesh for the financial years 1998-1999 to 2011- 2012. This incentive, given under an agreement, dtd. 15/11/2006, provided for the petitioner to utilize the sale tax that would otherwise be payable to the State and to repay the same with a gap of 14 years for each assessment year.

(2.) One of the conditions set out in the said agreement was that the State would be entitled to recover the entire amount of deferred tax, if the assets of the petitioner, were sold by the petitioner.

(3.) It appears that the petitioner has paid all the deferred taxes up to the year 2009-2010 with interest wherever there was delay in payment.