TMI Blog2004 (6) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... t be noticed. 2.. The respondent, a private company with unlimited liability (hereinafter referred to as the company ), had set up an industrial unit at the Industrial Development Area at Kanjikode in Palakkad District and it commenced commercial production of soft drinks in March, 2001. It is an industrial unit under the large and medium category. It had set up the unit with its own fund and, therefore, is a self financed unit within the meaning of the Government Notification S.R.O. No. 1092 of 1999. It applied to the Director of Industries and Commerce for the grant of an eligibility certificate to claim sales tax exemption under the aforesaid Government Order. In terms of the said order a new industrial unit other than a public secto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... steps if it has, (a) obtained provisional registration (applicable only in the case of SSI units), (b) owned or acquired or has been allotted land for establishing the industrial units and applied for financial support from any regular financial institution/Government before January 1, 2000 or (c) in the case of self financed units acquired or placed firm orders for the purchase of the necessary plant and machinery, before January 1, 2000 provided that the unit commences commercial production on or before the 31st December, 2001. It may be mentioned that S.R.O. No. 1092 of 1999 was subsequently amended by S.R.O. No. 295 of 2000 and clause (ii) as reproduced above is in the amended form with which we are concerned in the present case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s commercial production on or before December 31, 2001. According to clause (c) of (ii) the unit is required to place firm orders for the purchase of necessary plant and machinery. This clause does not lay down any amount which the industrial unit has to pay by way of advances to the seller while placing the order for the plant and machinery. How much amount is paid as advance will depend upon the terms of the contract between the parties. What is necessary is that a firm order should be placed for the purchase of necessary plant and machinery. It cannot, therefore, be said that merely because the company deposited a small percentage of the amount as advance with the seller it did not place firm orders for the plant and machinery. The reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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