TMI Blog1993 (8) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... plied to the A.P. State Financial Corporation on September 23, 1989 for project finance. The Corporation sanctioned loan in his favour by order dated November 18, 1989. On September 11, 1989 petitioner availed of the first advance for purchase of machinery. Construction of the factory commenced thereafter, and the machinery was installed still later. Commercial production commenced on April 2, 1990. On June 20, 1990 petitioner filed a formal application for incentives in accordance with G.O. Ms. No. 498 dated October 16, 1989 and the Manual of Guidelines issued by the State Government. By an order dated June 28, 1990 his application was rejected. The State Level Committee which has to determine eligibility of industrial units for Liberalise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government order and any proceedings granting him the eligibility to claim sales tax exemption shall be unimpaired, unless they are cancelled for valid reasons after due notice to him. Government Pleader (Commercial Taxes) invited our attention to clause 10 of G.O. No. 498 which provides that"Accordingly, only new industrial units which hold valid registrations/letters of intent and have taken steps for the first time on or after October 3, 1989 for project implementation such as applying for project finance, placing orders for any part of the machinery, commencement of construction, etc., would be eligible for these concessions provided they go into commercial production before March 31, 1995. On the question whether any industrial unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... units which have filed loan applications with the financial institutions prior to October 3, 1989" and that "such claim applications are being returned to the respective General Managers since those units are not eligible for incentives under the Scheme as they have taken implementation step prior to October 3, 1989". In that circular memo, it was directed that "the concerned General Managers shall withdraw such temporary eligibility certificates forthwith, if issued, under intimation to the office of the Commissioner of Industries". That memo, had to be issued pursuant to the decision of the Government in its Memo. No. 230/IFR/91-1, dated November 8, 1991 of the Industries and Commerce (IFR) Department rejecting the proposal of the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit in terms of the Government order shall be final". In the present case, we have seen that the order of the State Government treating industrial units which had applied for project finance earlier than October 3, 1989 not to be new units eligible to claim benefits of the scheme in terms of G.O. No. 498. On the question of natural justice, we hold that the petitioner who was granted only a temporary eligibility certificate and a temporary registration with a specific caution that neither confer any right on the petitioner, which were in terms of the governing order of the State Government to achieve finality only when the Government passed orders, is not entitled to urge any violation of principles of natural justice. He was aware of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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