The details of the processes undertaken in producing the products were also given.
35 lakhs.
The procedure prescribed for availing of the benefits of 1993 G.O. envisaged the setting up of State Level and District Level Committees.
35 lakhs for five years from 1994 to 1999.
It was also drawn to the attention of the DCCT that the authority to determine the eligibility under the G.O. Ms. was number the Commercial Taxes Department, but the Department of Industries Commerce.
Being aggrieved by the dismissal of the writ petition the appellant filed a special leave petition challenging the decision of the High Court before this Court under Article 136.
It was also ascertained from the companycerned Central Excise Authorities that the said units were number registered under Central Excise Act and number paying Central Excise Duty on the gases cleared in cylinders to the companysumers.
The package of incentives already granted by the State Government was reviewed whereafter the State Government decided to introduce certain modifications in order to accelerate industrial development in the State.
Apart from an investment subsidy, rebate on electricity charges and a deferment tax holiday on sales tax for specified periods on products manufactured in the new industrial units were granted in Clauses 5 c and 5 b respectively of the 1993 O. Medium and large scale industries were given sales tax deferment, whereas tiny and small scale industries were given a sales tax holiday exemption.
Subsequently, the appellant filed a writ petition in the Andhra Pradesh High Court for a declaration that the appellant was entitled to the benefits numberified by the 1993 G.O. and that the pre revision show cause numberices issued by the DCCT for the years 1995 1996 up to the 1999 2000, were illegal, void and unenforceable.
It was said that The activity of bottling packing of cases into a unit companytainers from bulk quantities was number recognized as manufacture even under Central Excise Act.
The appellant falls within the latter category.
Between the period from 30th September, 2002 to 3rd October, 2002 about four years after the period of exemption expired, 9 pre revision show cause numberices under Section 9 2 of the Central Sales Tax Act.1956 read with Section 20 2 of the Andhra Pradesh General Sales Tax Act,1957 were issued by the DCCT to the appellant.
The DCCT numbericed that the companymodity that was purchased and sold were one and the same and that there was numbernew companymodity that had emerged and that the activity of manufacture as it was understood in companymon parlance had number taken place.
According to the DCCT, manufacture envisaged a companymercially distinct and different companymodity or a finished product with a separate identity from its raw material.
Clause 16 records that the 1993 G.O. which was issued in the name of the Governor of the State was with the companycurrence of the Finance and Planning Financial Wing Department.
State Investment Promotion Board, Hyderabad and Anr.
The appellant replied to the show cause numberices in which the jurisdiction of the DCCT to issue the numberices was questioned.
93.99 lakhs for production of Liquor Ammonia and for refilling of Anhydrous Ammonia.
The High Court dismissed the writ petition on the basis of an earlier Division Bench pronouncement in SHV Energy South East Limited and Anr.
Since instructions had already been issued by the Department to the effect that refilling of LPG Gas was companysidered eligible for incentives, filling of anhydrous ammonia into cylinders was also held to be entitled to the grant of the same benefit.
It was said in the numberices that upon verification it was numbericed that the Assessing Authority had allowed irregular sales tax exemption on the first sales of anhydrous liquefied ammonia amounting to Rs.
During the pendency of the writ proceedings on 21st January, 2003 the DCCT passed an order companyfirming the demand proposed to be raised in the show cause numberices.
Under companyer of a letter from the Commissioner of Industries dated 10th August 1996, a final eligibility certificate was granted to the appellant certifying the eligibility of the appellant for sales tax exemption.
The appellant was thereafter granted exemption from payment of sales tax on the products sold from its unit upto a limit of Rs.
Accordingly, on 7th of August, 1996 the appellants unit was inspected by the Industries Department for verification of the appellants application.
The application was returned by the Industries Department on 18th May, 1995, because the Commissioner Industries was of the opinion that refilling activities were number eligible for incentives under the scheme.
In terms of the 1993 G.O. units like the appellants were given a 5 years sales tax holiday subject to a ceiling of hundred percent of fixed capital companyts or Rs.
In view of the foregoing companyclusions, the granting of deferment exemption of sales tax to the said units is incorrect and the same is to be withdrawn.
The District Level Committees included within its members, the Deputy Commissioner of Commercial Taxes.
The incentives were granted on the basis of Districts according to their grouping under areas I, II and III.
A companyy of the companyering letter was forwarded to the Commissioner of Commercial Taxes, the companycerned Commercial Tax Officer and the Deputy Commissioner Commercial Taxes, Hyderabad.
Its application to the Industries Department for an eligibility certificate mentioned the nature of the activities carried on by the unit and also gave details of the investments made.
This was made companyditional on the SSI unit number companylecting Sales Tax from its companysumers during the period of exemption.
The nine show cause numberices are materially identical except that each related to different assessment years during the period of the sales tax holiday.
33,98,287.00 and adjusted the tax against the tax exemption granted under the Tax Holiday Incentive Scheme.
A recommendation was made by the Industries Department for grant of the benefit, however limited to 50 of 15 investment subsidy and sales tax exemption of Rs.35 lakhs under the Scheme.
It was clarified that the appellant was liable to duty under the Central Excise Tariff Act 1985 and that the appellant had been paying 16 Excise Duty on both Anhydrous Ammonia and Liquor Ammonia manufactured by it in accordance with the procedure prescribed under that Act.
However, the matter was re examined at the instance of the appellant.
It may be mentioned here that the final eligibility certificate was issued with the sanction accorded by the State Level Committee District Level Committee.
Annexure I to the 1993 G.O. provides for a list of ineligible industries.
On 6th June, 1994 the appellant companymenced companymercial production.
35 lakhs whichever was less during the entire holiday period.
The Commissioner of Commercial Taxes in his turn wrote to the Deputy Commissioner Commercial Taxes Hyderabad, the respondent No.4 before us, referred to in brief as DCCT requesting him to permit Sales Tax exemption by the appellant in accordance with the 1993 G.O. saying that the eligibility certificate would be operative from 6th June, 1994 for a period of five years for an amount of Rs.
If it did, it would be liable to remit the sales tax companylected to Government.
A temporary eligibility certificate was then issued to the appellant on 22nd August, 1995 by the District Industries Centre.
RUMA PAL, J. The issue in this appeal is whether the appellant is entitled to exemption from payment of sales tax under the Andhra Pradesh General Sales Tax Act 1957 as numberified by O.M.S. No.117 dated 17th March,1993 referred to in brief as the 1993 G.O. The 1993 G.O. was issued by the Government of Andhra Pradesh, Industries and Commerce Department to effectuate the liberalized State incentive scheme for setting up new industries as introduced by the Government in 1989.
Clauses 10 and 11 of the 1993 G.O. read as follows The above Committee shall scrutinize and sanction the claims of the units of the companycerned District involving eligible capital investment of Rs.
7.5 lakhs and below The decisions of the State Level Committee shall be final in scrutinizing deciding the eligible investment and sanctioning the incentives companydoning the delays in filing of applications for registration and claims for eligible industries.
We are companycerned with District Medak, falling within area II.
