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2017 (5) TMI 377 - HC - VAT and Sales TaxBenefit of Sales Tax Exemption - Notification dated 28th July 2016 - exemption limit - Eligibility Certificate - economic development of District of Kutch - investment in purchase of assets - relevant date of investment - typing error in Gujarati version - interpretation - Whether the petitioner-Company is entitled to Incentives/Sales Tax Exemption under the Scheme on the investment made/expenditure incurred after 31st December 2005, but within a period of 18 months from the date of commencement of the commercial production? - Held that: - in case of Small Scale Industrial Units, Medium and Large scale Industrial Units, the assets acquired upto the period of six months or within 1 year from the date of commencement of commercial production or till the date of completion of the said Scheme ie., 31st December 2005; whichever is earlier between the two, shall be considered eligible for the purpose of Incentives. However, in the Gujarati version of the Incentive Scheme, the expression “whichever is earlier between the two” is missing in case of Industrial Units having project cost exceeding ₹ 10 Crores. The aforesaid seems to be an inadvertent mistake in publication/typing - even the petitioners also understood that the assets acquired within a period of 18 months from the commencement of commercial production or till the Scheme ends on 31st December 2005 [whichever is earlier between the two] shall be considered eligible for the purpose of the incentive. - when the petitioners and all other Industrial Units/ Undertakings/Projects [105 in number] understood the Scheme, the manner in which the State Government had pleaded and all are treated equally and in case of all Industrial Undertakings/Projects, the assets acquired only upto 31st December 2005 are considered eligible for the purpose of incentive, the petitioners are not entitled to incentive on the assets acquired subsequently after commencement of commercial production or after 3.12.2005 - claim of petitioner rejected. Whether the petitioner-Company is entitled to Incentives/Sales Tax Exemption under the Scheme on the investment/expenditure incurred after 31st December 2005 with respect to Phase II project? - Held that: - only those Units/Industries/Projects which had not gone in production before 31st December 2005 are considered as pipeline projects. In the present case, the petitioner-Company had already gone in production w.e.f 27th December 2005, and therefore, as per the Scheme/Government Resolutions amended from time to time and lastly amended vide G.R dated 7th January 2005, the case of the petitioners shall not fall under the category of pipeline project - petition dismissed. Whether the petitioner-Company is entitled to Incentive/Sales-tax exemption under the Scheme on the plant and machineries installed in the Project by 31st December 2005 but the actual payment is made subsequently ie., after 31st December 2005? - Held that: - the petitioner-Company is entitled to the benefit of Incentive Scheme/Sales Tax Exemption on the expenses incurred/investment made on purchasing the land, constructing building and installing the plant and machineries prior to 31st December 2005 but the payment might have been made subsequently ie., after 31st December 2005 - partly decided in favor of petitioner. Petition dismissed - decided partly in favor of petitioner.
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