TMI Blog2002 (10) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... to accelerate the industrial growth in the State of Bihar introduces the Industrial Policies from time to time. By notification dated December 22, 1995 it came out with an Industrial Policy giving several incentives to the new industrial units as well as to the old industrial units having undergone expansion/diversification. One of the incentives was to grant exemption from payment of sales tax on purchase of raw materials and sale of finished products. A copy of the said industrial policy has been annexed as annexure-1 to both the writ applications. The exemption with regard to sales tax on sale of finished goods for new units has been contained under clause 16.2 of the said policy which runs as follows: "16.2. Sales tax on sale of finis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixed investment made by the unit. 4.. The petitioners units were registered for manufacturing aforesaid four items from wheat. Registration certificates granted by the authorities have been annexed with both the writ applications. 5.. In terms of the industrial policy, notification granting exemption from payment of sales tax on purchases of raw materials and sale of finished goods were issued by the Finance Department, copies of which have been annexed as annexure-2 to both the writ applications. 6.. The petitioners applied for grant of exemption from payment of sales tax in terms of the aforesaid notification clearly stating that the items for exemption were wheat products, namely, atta, maida, suji and bran, that is also evident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ran is a by-product and not the finished goods and in that view of the matter, the authorities rightly withdrew the exemption granted earlier to the petitioners in terms of the industrial policy. 10.. In view of the aforesaid submission, the only question for consideration is whether bran is a finished goods or not. The industrial policy, as stated above shows that the exemption is given to the finished goods. Both the petitioners-companies have been registered for manufacturing atta, maida, suji and bran. It is not in dispute that bran is also a product like other three products of wheat. It is a commercial product and is known as such in the market. If it is accepted that it is not the main finished product, then it is secondary finishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e burning of coal as fuel is a product of the appellant-industry though it might not be the principal product for which the industry was established. Even so, being a product of the industry, it is entitled to the exemption given by the said order." 13.. These two cases fully support the case of the petitioners. Accordingly, we hold that bran is also a finished goods and is entitled to exemption like other wheat products, namely, atta, maida, and suji. The contrary view taken by the authority is against law. Accordingly, the impugned orders withdrawing exemptions granted to the petitioners earlier, as contained in annexure-8 to C.W.J.C. No. 10205 of 2002 and annexure-7 to C.W.J.C. No. 10589 of 2002 are quashed. 14.. In the result, bot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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