TMI Blog1993 (1) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956, the Government of Rajasthan having been satisfied that it was expedient in the public interest to frame and notify the Sales Tax Incentive Scheme for Industries, 1987 and exempt the industrial units from payment of tax on sales made in the course of inter-State trade and commerce of the goods manufactured by them within the State, notified such Sales Tax Incentive Scheme vide notification dated May 23, 1987, which was to come into operation with effect from March 5, 1987 and to remain in force up to March 31, 1992. On July 6, 1989, again a notification was issued in exercise of the powers conferred by sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954, whereby the Government notified "Sales Tax New Incentive Scheme for Industries, 1989" and exempted the industrial units from payment of tax on sales of goods manufactured by them within the State in the manner and to the extent for the period as exempted by this notification. The operation of this new incentive scheme was deemed to have come into force with effect from March 5, 1987 and was to remain in force up to March ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the same, again applied to the RIICO for renewal in the year 1987. The renewal was granted on November 21, 1989. The petitioner deposited the penalty, development and other charges in respect of the plot in question. The petitioner installed its industry and was ready in April, 1990, but for want of electric connection, production could not start. The petitioner deposited a sum of Rs. 1,02,283.65 with RIICO and invested Rs. 3,97,459.53 in the construction of building and for running oil industry and also invested a sum of Rs. 10,29,981.16 for machines and, thus; invested a total sum nearly Rs. 16 lacs in completing the works and setting up of plant by the end of April, 1990. However, for non-availability of electric connection production could not be started and the same was started from June 11, 1990. The petitioner then approached the respondents for granting exemption under the incentive scheme and, it was conveyed to the petitioner by the non-petitioners that the oil industries have been withdrawn from the exemption and the oil industries are not exempted under the New Sales Tax Incentive Scheme. The petitioner came to know that a notification dated May 7, 1990 by way of ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial area, Bharatpur, and lease agreement was granted on September 29, 1989 by RIICO. The petitioner deposited the development charges, lease money and other amounts and invested heavy amount on the construction of building for running industries and a sum of Rs. 8,09,761 on the machines installed for running the oil industries and in all a sum of nearly Rs. 15 lacs was invested. The petitioner completed all the works and set up the plant in the month of March, 1990; but on account of non-availability of electric connection, the industry could not be started prior to May 1, 1990, when it was so started by generator and the electric connection was granted to the petitioner on May 15, 1990 and since then the petitioner is running an oil industry. Thereafter he applied for the grant of exemption from sales tax under the aforesaid incentive scheme. Reply has been filed on behalf of respondents Nos. 1 to 3 on more or less the same lines as mentioned above, in the case of M/s. Lokendra Industries. The averments regarding the lease agreement dated August 29, 1989, has been denied and, it has been further submitted that the petitioner did not approach respondents Nos. 1 to 3 for grant of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of the notification dated May 7, 1990, rejected the petitioner's application. (4) In Raj Roller Flour Mills Ltd. (D.B.C.W. No. 331 of 1991), it has been stated that the petitioner's industrial unit was registered provisionally by the Director of Industries, vide letter dated December 12, 1989 and immediately thereafter the construction of the factory was started, substantial investment was made and that order had been placed for purchase of machinery and substantial amount had also been given in advance. It has been stated in para 8 that the petitioner had established a new unit and had taken steps from 1987 for establishment of the unit for manufacturing oil on the promises of the Government of Rajasthan and a reference has been made to the notification, annexure 4, dated July 26, 1991, whereby it was provided further that the oil extracting or manufacturing industries, whether new or going for expansion or diversification shall be entitled to claim exemption from tax as provided in clause 4 of this notification. The contents of this notification dated July 26, 1991, annexure 4 of this writ petition, are reproduced as under: NOTIFICATION Jaipur: dated the 26th July, 1991 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on June 1, 1988. The petitioner deposited the development charges of the land, lease money and other amount to the RIICO, and the petitioner paid Rs. 98,100 as development charges, Rs. 2,500 as security money as charges of rent and incurred Rs. 13,000 in registration of the lease deed. The petitioner also incurred heavy amount in construction and erection of the plant, for building construction had incurred a sum of Rs. 6,98,821.91 and incurred Rs. 13,43,977.67 in plant and machinery and, thus, incurred a total sum of Rs. 22 lacs. It had placed orders for installation of plant and machinery on March 30, 1990; had placed orders to Esen Engineers and Techmece Engineers on April 9, 1990, etc., had applied for electric connection on July 28, 1989. Demand notice was issued on January 20, 1990. The entire amount was deposited by the petitioner on February 19, 1990. Electric connection was released to the petitioner on January 30, 1991 and the petitioner started its factory and oil production was started on February 8, 1991 and commercial production was started on February 25, 1991. The petitioner then moved the non-petitioner and ultimately sent the application on July 29, 1991, for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its meeting held on December 23, 1991, as per the order annexure 13. In this case also, no return has been filed on behalf of the respondents. (7) In M/s. Bindal Oil Mills Pvt. Ltd. (D.B.C.W. No. 4986 of 1992), also, after narrating the history of this industrial unit and the narration of the notification and publication of the incentive schemes, it has been stated that substantial investments were made on construction and purchase of machinery; the provisional registration was given to this company by the Sales Tax Department with effect from April 1, 1990, and it has been extended from time to time; had moved the District Level Committee for grant of sales tax exemption mentioned therein that the oil production was started on December 6, 1990 and the commercial production was started thereafter from January 4, 1991. The established turnover as stated in the application for the purpose of Rajasthan sales tax and Central sales tax is Rs. 0.5 crore and Rs. 1.0 crore respectively. The petitioner then received the letter dated September 11, 1991, from the office of the District Industries Officer requiring certain documents which were submitted by the petitioner. The petitioner r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the parties. In the case of Lokendra Industries, the industry had been duly installed by April, 1990 and, it has been submitted that it could not be so installed earlier on account of non-availability of electric connection and the production was started on June 11, 1990. In the case of Aditya Industries, it has been submitted that the industry has been installed in March, 1990, but the production could not be started prior to May 1, 1990 on account of nonavailability of electric connection and even on May 1, 1990, the production was started with the help of the generator and the electric connection was granted on May 15, 1991. In Jagdamba Industries, the production was started on February 2, 1990. In the case of Raj Roller Flour Mills Ltd. all necessary steps were taken immediately after December 12, 1989. In the case of Gopal Mills, the production was started on February 8, 1991 and commercial production was started on February 25, 1991. The electric connection was applied for on July 28, 1989, although the amount was deposited on February 19, 1990, the electric connection was released as late as on January 30, 1991. In M/s. Kali Bond Oil Mills the commercial production wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of estoppel against statute. In the facts and circumstances of the present cases, the question is of estoppel against the conduct of the respondents and law of equitable and promissory estoppel is the law of evidence. The essence of the impugned notification dated May 7, 1990, is the conduct of the respondents in withdrawing exemption which had been granted under the schemes of 1987 and 1989 for a period up to March 31, 1992. This impugned notification is a notification issued in exercise of the powers under the provisions of sub-section (5) of section 8. This notification is, therefore, a notification issued in exercise of the powers under the law and the effect of this notification causing prejudice to the petitioners has to be judged with reference to the conduct of the respondents which is reflected through the impugned notification and, as such, there is no question of estoppel against law. It is a plain and simple question of estoppel against conduct reflected through the impugned notification. Therefore, we do not agree with the submission of the respondents that it is a case of estoppel against statute. If the schemes had been notified to be operative up to March 31, 1992 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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