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2014 (11) TMI 877 - HC - VAT and Sales TaxCapital Investment Incentive (General) Scheme 1995-2000 - sales tax incentives as measures to attract investments into such backward areas with a view to generate greater employment in less industrially developed areas - Gujarat Sales Tax Act, 1959 - recovery of sales tax - Held that:- When it has been found by the State Level Committee that by condoning the break in production to the petitioner, the purpose and object of the scheme is not likely to be achieved i.e. generating employment in the backward area and thereafter when the application of the petitioner for condonation of break in production has been rejected, the same is not required to be interfered with in exercise of power under Article 226 of the Constitution of India. Now, so far as the contention on behalf of the petitioner that impugned decision / communication dated 28.6.2006 is contrary to the interim direction issued by this Court issued in its order dated 5.5.2006 is concerned, the aforesaid has no substance. It is the case on behalf of the petitioner that while directing the State Level Committee to reconsider its earlier decision, the Division Bench in its interim direction / order dated 5.5.2006 specifically directed the State Level Committee not to consider the factum of stoppage of production subsequently and the unit being closed subsequently and despite the same while taking the decision which has been communicated on 28.6.2006 the State Level Committee has taken into consideration the subsequent closure of the unit and therefore, the same is not permissible and therefore, the impugned order / decision is against the interim direction issued by this Court. Decision of Supreme Court in the case of Mangalore Chemicals and Fertilizers Limited [1991 (8) TMI 83 - SUPREME COURT OF INDIA] distinguished wherein it was held that, non fulfillment of requirement for benefit of exemption was only formal and procedural and not fatal to the application for grant of permission. - In the present case non compliance of the conditions cannot be said to be formal or procedural. - Decided against the assessee.
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