2013 (7) TMI 892 - HC - VAT and Sales Tax

the industry can run in a rented premises, but if there is a stipulation in the concerned Scheme or order of conversion of land that prior permission is necessary and prior permission ought to have been taken before running the industry.

Summary

Issues:
Claim rejection under Sales Tax Incentive Scheme,1998.

Analysis:
The petitioner, engaged in manufacturing woollen yarn, leased land for 15 years, but the Committee rejected the application citing non-compliance with Scheme conditions. The petitioner argued that rented premises should be eligible based on court precedents. The respondent's counsel contended that the rejection was justified, being a factual matter. The judge found the rejection valid as the land was industrial, application was delayed, and no permission was obtained for land conversion. The Tax Board upheld the rejection based on non-compliance with Scheme terms. The judge distinguished cited cases, emphasizing the necessity of prior permission for land use. The judge concluded that the rejection was lawful, based on factual assessment, and no legal question arose, dismissing the revision petition without costs.