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M/s Dugar Tea Industries Pvt. Ltd Versus State of Assam & Others

2016 (10) TMI 258 - SUPREME COURT

Denial of exemption from payment of sales tax - Industrial Policy, 1982 - blending and packing of Tea - Eligibilty Certificate - Held that: - tea is not to be included in “raw material” and therefore, no exemption could have been claimed by the Appellant Company in respect of ‘tea’ as a raw material for purchase as well as sale of tea. - Certificate of Authorisation - Held that: - no certificate of authorisation, as provided under the Act, had ever been granted to the appellant-Company - the .....

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ppeal Nos.3247-3253 of 2009 Civil Appeal Nos.3254-3262 of 2009 Civil Appeal Nos.3264-3266 of 2009 - Dated:- 6-10-2016 - Anil R. Dave And Shiva Kirti Singh, JJ. JUDGMENT ANIL R. DAVE, J. 1. Being aggrieved by the common judgment delivered by the Gauhati High Court on 14th November, 2006, the appellants have approached this Court by way of these appeals. 2. The facts giving rise to the present litigation, in a nutshell, are as under: As the legal issues involved in all of the aforesaid appeals are .....

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trial Policy in 1982, which had thereafter been revised in 1986. The said Policy had been framed so as to increase economic and industrial growth in the State. 4. In pursuance of the aforestated Policy, the respondent-State enacted Assam Industries (Sales Tax Concession) Act, 1987 (hereinafter referred to as the Act ). By virtue of the provisions of the Act, certain new industries, subject to certain conditions, were to be given exemption from payment of sales tax but the exemption was not to be .....

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e appellant-Company was merely blending and packing tea and was not having any manufacturing activity. 7. As the sales tax exemption had been denied to the appellant-Company, the appellant-Company filed petitions before the High Court challenging denial of the tax exemption but the petitions had been rejected by a common Judgment dated 9th September, 2003 and being aggrieved by the rejection of the petitions, the appellant-Company had also filed writ appeals, which have been dismissed by a commo .....

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1988 to 13th April, 1993, as the appellant- Company was eligible to get the exemption from payment of sales tax under the 1986 Incentive Scheme of Government of Assam. 9. The learned counsel further submitted that as per the exemption granted under the eligibility certificate, the respondent-State and the Sales Tax Authorities of the respondent-State were bound to give exemption from payment of sales tax to the appellant, but the appellant had been denied the exemption, which was neither fair n .....

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nsel cited several judgments to substantiate his case that once an assurance was given to the appellant under the eligibility certificate that the appellant-Company would be enjoying exemption under the 1986 Incentive Scheme of Government of Assam, the exemption could not have been withdrawn by the respondent-Authorities. 10. On the other hand, the learned counsel appearing for the State Authorities supported the judgments delivered by the learned Single Judge as well as by the Division Bench of .....

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the appellant was not entitled to any exemption. 12. Moreover, he submitted that the appellant- Company was not involved in any manufacturing activity. It was merely blending and packing tea and blending as well as packing of tea was not a manufacturing activity and therefore, also the appellant was not entitled to the benefit claimed by it. 13. The learned counsel thereafter submitted that according to the provisions of Section 4 of the Act, Certificate of Authorisation should have been procure .....

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ned counsel. 16. Upon perusal of the record and the law laid down by this Court in the light of the facts of the case, we are of the opinion that the view expressed by the Courts below cannot be said to be incorrect. 17. Rule 2(f) of the Assam Industries (Sales Tax Concession) Rules, 1986 reads as under:- 2(f) Raw material means any material or commodity capable of being used for manufacture of any other product specified in any authorisation certificate as intended by the holder for use by him .....

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to note that the appellant had earlier preferred Civil Rule No.4162 of 1991 before the High Court challenging validity of the aforestated Rule. The learned Single Judge, while rejecting the petition, vide order dated 17th August, 1988 held that Rule 2(f) of the 1988 Rules was legal and valid and the plea of promissory estoppel raised by the appellant was also not accepted. Against the said judgment, no appeal was filed by the appellant and therefore, the said issue had attained finality. 18. An .....

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purposes of sub-section (1) of section 3. (2) If the authority to whom an application is made under sub-section (1) is satisfied that the application is in conformity with the provisions of the Act and the rules made there under it shall grant to the applicant a certificate of authorisation in the prescribed form which shall specify the class or classes of goods for purposes of sub-section (1) of section 3 and the period for which it shall remain valid. (3) A certificate of authorisation grante .....

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lder or, where no such application has been made, after due notice to the holder, that by reason of the holder having changed the name, place or nature of his business or the class or classes of goods bought, sold or manufactured by him or for any other reason the certificate of authorisation granted to him required to be amended; or (b) be cancelled by the authority granting it, where he is satisfied after due notice to the holder that the holder has ceased to carry on business or for any other .....

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