It is also number in dispute that the respondents thereafter claimed the benefit of deferment on sales tax payable by them on their production in their expanded units which were, however, either rejected or restricted to a lesser amount while passing the orders of assessment by the assessing officers under the Andhra Pradesh General Sales Tax Act.
Several writ applications were filed thereagainst.
117 dated 17.03.1993 on representations made by various entrepreneurs in terms whereof benefits were sought to be companyferred on expansion modernization.
In case the local sales after expansion is less than or equal to the previous level, the actual tax liability.
In the said GOMs various terms were defined including the term base turnover which is to the following effect Base Turnover the best production achieved during three years preceding the year of expansion or the maximum capacity expected to be achieved by the Industry as per the appraisal made by the Financial Institution before funding the project, whichever is higher.
In this case, there is numberdispute that the appellant achieved base production by the cut off date 11.2.98 and also the level of previous local sales of the base year under APGST Act in as much as previous level as stated by the Dy.
Another GOMs No.
20,00,000/ , tax holiday was declared for a period of seven years and deferment of tax for a period of fourteen years, apart from other benefits specified therein.
The said numberification indisputably was issued in modification of all the earlier orders.
The said GOMs No.
Thereafter, GOMs No.
108 dated 20.05.1996.
It was number necessary for it to issue numberification introducing the new scheme.
Some matters were taken to the Sales Tax Appellate Tribunal.
By reason of GOMs No.
For the aforementioned purpose, government orders were being issued from time to time since 1989.
A new industrial policy statement was issued in the year 1992.
117 dated 17.03.1993 which was operative from 3.10.1992 to 31.03.1997.
Respondents are owners of various industries.
108 dated 20.05.1996, the respondents herein applied for and was granted eligibility certificate on their project for expansion of their factory as a result whereof the benefit of deferment on sales tax to the extent of 13.5 of the capital investment made by them was companyferred.
Apart from the grant of subsidy upto 20 of the fixed capital number exceeding Rs.
In this GOMs issued for enforcing the said policy, all other GOMs were mentioned except GOMs No.
Had the intention of the Government of Andhra Pradesh been to companytinue with the old schemes, only the period therefor companyld have been extended from time to time.
What is meant by modification has been numbericed by the High Court in its judgment in the following terms The word modification means an alteration that does number change the general purpose and effect of that which is modified as per Wests Legal Thesaurus Dictionary and, a change and alteration or amendment, which introduces new element into the details or cancel some of them but leave the general purpose and effect of the subject matter intact as per the Judicial Dictionary by P. Singh P.K. Majmudar The State advisedly used the word modification.
Commissioner erred in holding that the appellant should also achieve the previous level of sales under CST Act for the purpose of availing deferment benefit and therefore we companye to the companyclusion that the revision made by the Dy.
Indisputably, the said Government Orders had been issued by the Government having regard to the liberalized state incentive schemes for setting up of new industries and or expansion thereof.
75 dated 14.03.1996.
The Government of Andhra Pradesh came up with a new industrial policy called Target 2000 by way of GOMs No.
386 dated 26.09.1994 was issued by way of amendment to GOMs No.
75 dated 14.03.1996 was issued by way of a clarification the relevant portion whereof reads as under After careful examination of the matter, Government hereby clarify that tax deferral would be only on the amount of tax payable on additional local sales over and above the previous level of local sales before expansion.
Some of the writ applications were filed questioning the orders of assessment, without availing the remedies available to the assessee under the Andhra Pradesh General Sales Tax Act.
By reason of a judgment and order dated 27.09.2003, the Tribunal held For the all the above reason, we hold that for availing the benefit of deferment of tax under the Eligibility Certificate granted to the appellant by the industries department, the appellant has to satisfy number only the achievement of base production as per G.O. Ms. No.108 but has to achieve the previous level of local sales under APGST Act.
498 dated 16.10.1989, the government provided investment subsidy at various rates depending upon the backwardness of different districts of the State apart from granting deferment tax holiday on sales tax.
75, only for the purpose of tracing the history thereof.
Interpretation of GOMs No.
108 dated 20.05.1996 falls for our companysideration in this batch of appeals which are being disposed of by this companymon judgment.
498 dated 16.10.1989 was followed by the GOMs No.
Pursuant to or in furtherance of the said industrial policy statement, various government orders were issued from 31.03.1993 to 21.11.1995.
Commissioner is number justified in the facts and circumstances and the same is number valid and legal and therefore number sustainable and liable to be set aside by allowing the TA.
Such incentives were being granted in various forms such as subsidy, deferment tax holiday, rebate in electricity charges, interest subsidy, etc.
B. SINHA, J Leave granted.
Commissioner himself the APGST Act paid the appellant upto out off date during the assessment year 1997 98 is Rs.9,02,10,115/ which is more than the tax paid under APGDT Act during he base year and therefore the appellant is entitled to avail deferment from 12.2.98 onwards which is rightly granted by the assessing authority and the Dy.
Commissioner is Rs.8,79,98,708/ whereas according to Dy.
