TMI Blog2007 (3) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... jor industries and also to assess the eligibility of a new industry and issue eligibility certificate under the scheme. The said G.O.Ms.No.500, Industries (MIG-II) Department, dated 14.5.1990 reads as under: GOVERNMENT OF TAMIL NADU ABSTRACT Industries Declaration of Most backward taluks Incentive schemes for industries Interest free sales tax scheme Further liberalisation order issued. INDUSTRIES (MIG-II) DEPARTMENT G.O.Ms.No.500 Dated: 14.5.1990 Read: 1. G.O.Ms.No.305, Industries, dated 22.5.1989 2. G.O.Ms.No.423, Industries, dated 7.7.1989 3. G.O.Ms.No.563, Industries, dated 19.8.1989 4. G.O.Ms.No.564, Industries, dated 19.8.1989 ORDER: The Government in the order second read above declared 105 taluks of this State as industrially backward for the purposes of grant of interest free sales tax loan, interest free sales tax deferral,state capital subsidy, etc. 2. With a view to correct regional imbalances in the industrialisation in the State by giving further incentives to more backward areas, the Government direct that 30 taluks, from among the 105 industrially backward taluk be declared as industrially most backward taluks. The names of 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of Tamil Nadu with an invest in fixed assets of more than Rs.50 crores, a special incentive of deferral of sales tax for a period of 9 years to the extent of total investment made in fixed assets will be given. This deferral concession will also be available to the existing industries going in for expansion / diversification with an additional investment in fixed assets for more than Rs.50 crores. 5. The sales tax deferral / waiver of expansion / diversification ordered in paras 3-4 above is subject to the sales tax payable on products manufactured by the capacity created by expansion / diversification units only. 6. The industries in the Most backward taluks and in the SIPCOT Complexes at Cuddalore, Manamadurai and Pudukottai can opt either for the full waiver of sales tax for a period of five years ordered in para 3 above or for the deferral of sales tax for nine years as applicable to the industries in the backward taluks ordered in para 4(a) above. The option should be exercised along with the application to be submitted to the authority for issuing eligibility certificate. The option once exercised and accepted will be final and cannot be changed. 7. The applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. 10. All eligible units which have commenced production before the date of issue of this order will be eligible for interest free sales tax loan / deferral, as per the order existing on the date of commencement of production. Units which have availed interest free sales tax loan under existing schemes, may opt for the deferral facility to the extent of uncompleted period and unutilised amount of the earlier scheme. 11. The original project in a taluk may go in for expansion / diversification in the same taluk where the original project is located or in any other taluk and avail the interest free sales tax deferral / waiver concession. However, this concession would be granted for one expansion / diversification only if carried out in the same taluk where the original project is located. 12. Second-hand machinery will not be part of the investment eligible to the computation of deferral or waiver of sales tax. 13. This order modifies all the previous orders available on the subject matter, to the extent to which the scheme has been covered by this order. 14. This order issued with the concurrence of Commercial Taxes and Religious Endowment and Finance Department vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.6. With the above background, the SIPCOT, by proceedings dated 16.8.1995, rescheduled the waiver period from 1.11.1994 to 31.10.1999 and also directed that the sales tax benefit for the period from 1.9.1998 to 31.10.1999 would be restricted to actual sales tax remitted during the period from 1.9.1993 to 31.10.1994. 3.7. Pursuant to the above proceedings rescheduling the period of eligibility of waiver of sales tax, the SIPCOT, again, by proceedings dated 1.3.1999, stipulated that the sales tax benefit for the period 1.9.1998 to 31.10.1999 would be restricted to actual sales tax remitted during the period from 1.9.1993 to 31.10.1994. 3.8. Aggrieved by the said proceedings, the petitioner filed W.P.No.4275 of 1999 seeking a writ of Certiorarified Mandamus to call for the records on the file of the first respondent therein in letter NO.IT/ST/TASL/99 dated 1.3.1999, quash the same and to direct the first respondent to amend the eligibility certificate deleting the words the sales tax benefit for the period from 1.9.1998 to 31.10.1999 would be restricted to actual sales tax remitted during the period from 1.9.1993 to 31.10.1994 occurring in the amendment certificate dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the spirit and substance of G.O.Ms.No.500, Industries (MIG-II) Department, dated 14.5.1990. In any event, the SIPCOT being the certifying authority has no jurisdiction either to restrict the benefit conferred on the petitioner by virtue of G.O.Ms.No.500, Industries (MIG-II) Department, dated 14.5.1990, nor to deny any part of such benefit relating to the waiver of sales tax. 5. Mr.Haja Nazirudeen, learned Special Government Pleader appearing for the revenue as well as SIPCOT, reiterated his contentions to sustain the impugned proceedings as well as the order of the learned single judge. 6.1. The power of taxation can be used not merely for raising the revenue, but also to regulate the economy, to promote the industrialisation and to encourage the investment for expansion or diversification of the existing industries and to develop new industries. 6.2. Our country is emerging as a major power with the goal aiming: (i) to maintain a sustained growth in productivity; (ii) to enhance gainful employment; (iii) to achieve optimal utilization of human resources; (iv) to attain international competitiveness; and (v) to transform India into a major partner and player ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular provision as apparent from the scheme of the Act, with the assistance of such external aids, as are permissible under law [SHREE SAJJAN MILLS LTD. v. COMMISSIONER OF INCOME TAX, M.P. BHOPAL, 1986 TAX LAW REPORTER 48]. 6.7. In order to apply the principle of reasonable construction to give effect to the purpose or intention of the provision, as apparent from the scheme of the Act, the Court must endeavour to harmonise the source of the Schemes as well as the regulatory procedure, because the statute should be interpreted in such a way to avoid absurdity and oracular interpretation and to have harmonious construction to advance the implementation of the schemes and to make them workable, unless it is impossible to do so, rather than making it meaningless. 7.1. This leads us to refer back the intention behind the Sales Tax Deferral/Waiver Scheme. The power conferred on the State to notify the Schemes, either for deferral or waiver, is nothing but a concession or a freedom from an statutory obligation which an exemptee is otherwise liable to discharge. It is a privilege granted, not available to all others. Therefore, an exemption, thus granted under statutory provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars from 1.9.1993 itself and therefore, the petitioner would not have any grievance by such rescheduling of the waiver period with restriction. The above observation of the learned single judge remains unchallenged by the revenue also. However, the fact remains that neither the proceedings dated 16.8.1995 nor the proceedings dated 1.3.1999 enable the petitioner to get back the sales tax for the period of 1.9.1993 to 31.10.1994, viz. to the tune of Rs.1044.21 lakhs. 7.5. If the petitioner is entitled to get back the said sales tax paid during the period of 1.9.1993 to 31.8.1994, we are of the considered opinion that the revenue would be greatly deprived, as the petitioner would be entitled to the said amount with the statutory interest of 12% per annum. In any event, the said observation of the learned single Judge, in our considered opinion, does not fit into the impugned proceedings dated 1.3.1999, as the same is silent to that effect. 7.6. On the other hand, since there is no dispute as to the entitlement of the petitioner for the waiver of sales tax to the tune of Rs.1044.21 lakhs for a period of five years, as rescheduled in the proceedings dated 16.8.1995, from 1.11.1994 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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