9911796707
TMI Blog2007 (10) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... benefits sought under the Industrial Policy declared subsequently by the Government of Assam in the year 1986, hereinafter referred to as "the 1986 Policy". Under clause 1.1 in Part II of the 1986 Policy, the new package of incentives was to remain in operation for the period from January 1, 1987 to March 31, 1990 or till such time the Government may deem it fit. Under clause 2, the eligible units have been described to mean "only new units set up on or after 1987 and the existing units, undertaking expansion, modernisation or diversification at the same location or at any other place in the State of Assam will be eligible for the incentives under the 1986 Scheme" provided that "expansion/modernisation/diversification of an existing industrial unit will also be eligible for the incentives if the total capital investment on plant and machinery in the expansion/modernisation or diversification, as the case may be, is more than 25 per cent of the total fixed capital investment of the existing unit". Clause 9 relates to the eligibility certificate which is required to be issued for availing of the incentives and such certificates are to be issued after ensuring that all the norms fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stries (Sales Tax Concession) Rules, 1988 came to be framed, hereinafter referred to as "the Concession Rules". Under the Concession Rules, the Superintendent of Taxes has been made the authority in respect of the new industrial units for exercising powers under the said Act and the Rules. Under rule 2(f) certain categories of raw materials would not be entitled to the benefit of concession provided. Plywood is mentioned as one of the raw materials which would not be eligible for the benefits extended to the new industrial units under the Concession Act. Rule 3 prescribes the procedure for applying for authorisation certificate. Rule 4 prescribes the documents to be furnished with such application. Rule 5 provides for additional particulars that are to be incorporated in the application for grant of authorisation certificate. Rule 11 provides that the certificate of authorisation shall be valid in case of new industrial units which have taken all effective steps before August 1, 1988 with effect from the date of granting of the certificate and up to a date not beyond five years from the date of completion of effective steps. Rule 5 provides for the classes of raw materials to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther indicated that such exemption of tax on sale of finished products will not extend to the industrial units carrying out expansions under the provisions of the Concession Act. Accordingly, it was put to the petitioner as to whether the assessing officer could have allowed sales tax exemption on the basis of the certificate of authorisation and how far the said authorisation certificate is justified as enforceable in law. The revisional authority took into account the following issues while exercising his revisional powers:- (i) The first certificate of eligibility was valid from April 4, 1985 to April 3, 1990. That means, the first certificate ceased to be valid from April 4, 1990. (ii) There is no provision for issue of any fresh certificate to the said unit treating the same as the continued new industrial unit or an expanded industrial unit. (iii) Further, it is also found that the said certificate of eligibility from March 24, 1990 was issued even before expiry of the original certificate of eligibility, which was valid up to April 3, 1990 and, therefore, the irregularity is apparent on the face of the said certificate of eligibility. It is also indicative that the indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y trenches on the powers of the assessing authority, which is impermissible in law. Refuting the argument advanced on behalf of the petitioner, Mr. R. Dubey, learned Government Advocate submits that in order to determine the entitlement of an industry to exemption from tax, the provisions incorporated under the Assam Industries (Sales Tax Concessions) Act, 1986 and the Rules framed thereunder, namely, the Assam Industries (Sales Tax Concessions) Rules, 1988 are required to be adhered to. Only after an industry fulfills the requirements laid down under the Act and the Rules, it is eligible to obtain authorisation certificate to make it eligible to claim exemption from tax. It is submitted by the learned Government Advocate that in the instant case, the petitioner-industry was not a new industry. It was claiming benefit as an industry carrying out expansion and since the petitionerindustry did not fulfill the conditions laid down by the provisions of the Concession Act and the Rules, it was not eligible to the authorisation certificate which was erroneously granted to it by the competent authority. It is also contended that since the petitioner had not applied for such auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the instant case. If one examines the decision cited on behalf of the petitioner reported in Santalal Mehendi Ratta (HUF) v. Commissioner of Taxes [2006] 143 STC 511 (Gauhati); [2002] 1 GLR 197, it can be seen that this court has held that revisional power is exercisable only with regard to jurisdictional error and not for correcting an error which is considered to be a wrong assessment order in the eye of the revisional authority. From examining the Statements and Objects of the Concession Act, it is apparent that the benefit of concession under the Act and the Rules are made available to only new industrial units. The benefit of tax concession was to be given on selective basis to new industrial units established in the State. Obviously, the said benefit was not to be given to an existing unit which has already availed of the benefit of exemption of tax under the previous policy declared by the State Government in the year 1982. It has been decided by a Division Bench of this court in judgment delivered on November 14, 2006 in a batch of writ appeals including Writ Appeal No. 283 of 1997 Radheshyam Rajendra Prasad v. State of Assam [2007] 12 VST 344 and in Doso ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
