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2017 (2) TMI 289 - HC - VAT and Sales TaxExemption from sales tax - Entitlement certificate - backward area - Vires of notification - Graphite Electrodes - the Petitioners are seeking a direction to the State Government, firstly to issue a Notification to amend Rule 31B in the same manner as amended Rule 31AA and remove a discrimination which according to them is to be found between similarly situated industrial units - alternatively, prayer that two Notifications dated 1st November, 2004 be declared as ultra-vires Article 14 of the Constitution of India - Held that: - Rule 31AA prescribes the method of computation of the cumulative quantum of benefits enjoyed by the eligible units over a specified period. It is, therefore, clear that a separate regime was provided for those who have opted or chosen the deferral mode of incentives. Perusal of both Rules, namely, 31AA which provides for calculation of the cumulative quantum of benefits and Rule 31B, which provides for conditions for permission to defer payment of total amount of tax as per the return for a specified period being incentives to certain eligible industrial units and falling in Chapter-V-A of the BST Rules, 1959, are not comparable. Rule 31B is specific and clear in terms. Once the underlying difference as pointed out cannot be lost sight of, then, the argument based on discrimination has no merit. It may be that there is a credit of DEPB. That is an incentive provided under the Foreign Trade Policy and to an exporter. It may be a transferable benefit and treated as intangible goods liable to tax under the Sales Tax Act. The Court in this case cannot even issue a declaration as prayed as an alternate relief once it finds that the fundamental and underlying difference between the two schemes and the two modes is the factor and which has weighed with the State. That is the real basis and which distinguishes the case of the Petitioners from those units under the exemption mode. Once this difference is noted, then, we do not see any reason to interfere with the impugned Notifications. We do not see how we can grant a declaration that the mandate of Article 14 of the Constitution of India is violated and breached. Petition dismissed - decided against petitioner.
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