Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 74 - GUJARAT HIGH COURTBenefit of Sales tax incentive scheme - for Phase-I Project the petitioner has been granted the Incentive Scheme under the Government Resolution dated 11.09.1995 treating it as premier unit. However, for Phase-II Project the petitioner has been denied the Sales Tax incentive under the Government Resolution dated 11.09.1995 on the ground that for Phase-II Project the unit is based on natural gas which can be said to be local mineral resources for which permit / license is required under the Mineral Rules or Act and therefore, for the Phase-II, the petitioner is ineligible to get the incentive benefit as per Clause 9(c) of the Annexure-B to the Incentive Scheme - whether for its Phase-II Project the petitioner is entitled to the benefit of Incentive Scheme under the Government Resolution dated 11.09.1995 more particularly as a premier unit or not? Held that: - while considering the question posed in the present petition, it is required to be considered whether natural gas / gas used by the petitioner in its Phase-II Project can be said to be local mineral resources for which permit / license is required under any Rules or Mineral Act,At this stage it is required to be noted that the raw material used in Phase-II of Gandhar Complex was gas and ethylene. The gas was procured from GAIL which supplied it to the petitioner through pipeline. In light of the aforesaid facts it is required to be considered whether the gas used can be said to be local mineral resource for which any license or permit under any Mineral Act or Rules is required. Natural gas cannot be said to be mineral/local mineral resource for which any permit/license is required under any of the provisions of the Mines and Mineral Act or Rules, the impugned decision to deny the benefit of the Sales Tax incentive under the Government Resolution dated 11.09.1995 to the petitioner for Phase-II Project cannot be sustained and the same deserves to be quashed and set aside and the matter is required to be remanded to the State Government for its fresh decision in light of the observations made hereinabove and to grant the benefit of the Incentive Scheme to the petitioner for Phase-II Project of Gandhar Complex if all other conditions of the Government Resolution dated 11.09.1995 are satisfied. Petition allowed by way of remand.
|