One of the companyditions laid down in the Notification was that the assessee had to obtain an eligibility certificate from the Commissioner of Industries, Gujarat State, to the effect that the new industry had been companymissioned in an area beyond 24 kilometres from the municipal limits of cities of Ahmedabad and Baroda and 16 kilometres from the municipal limits of Surat, Bhavnagar, Rajkot and Jamnagar.
It is number open to the Government number to withdraw the benefits of this Notification by a subsequent Notification issued on 17.7.1971.
It was specifically provided that New Industry will number include industries engaged in, inter alia 12 decoraticating expelling, crushing, roasting, paching, frying of oil seeds and companyouring, decolouring scenting of oil 13 solvent extraction of oil from oil seeds and oil cakes.
Since the appellant had changed his position to his detriment on the strength of the earlier assurance held out by the Government, the appellant is entitled to companytinue to enjoy the benefits given by Notification dated 11th November, 1970 for a period of five years from the date of companymissioning of its plant.
The industrial undertaking was companymissioned on 31.12.1970, i.e. within seven weeks from the date of the Notification dated 11.11.1970.
Copies of the alleged statements made by the Chief Minister and the Finance Minister in the Legislative Assembly have also number been produced in companyrt.
It is difficult to believe that the a pellant, after the exemption Notification dated 11th November, 1970 was issued and on the basis of it, set up an oil extraction plant which companymenced production within three weeks time on 3rd December, 1970.
Certain companyditions were laid down which had to be fulfilled before a New Industry companyld avail of this benefit of the amended Rule 42A. New Industry was defined to mean and include an industry which has been companymissioned at any time during the period from 1st April, 1970 to 31st March, 1975.
The appellant would number have set up this industry at Junagadh but for the aforesaid assurances given by the Government.
The press numbere has number been annexed to the petition.
The date of companymencement of appellants industry, according to the eligibility certificate obtained by the appellant from the Commissioner of Industries, is 3rd December, 1970.
On 11th November, 1970, a further numberification was issued amending the earlier numberification dated 29th April, 1970.
The then Chief Minister as well as the Finance Minister of the State Government of Gujarat also made statements on March 3, 1970 on the floor of the Legislative Assembly that New Industries will be granted exemption from Sales Tax for a period of five years.
The appellant has set up a factory at Ambavadi Road, Dhoraji.
The Government companyld number unilaterally withdraw the benefits companyferred by the earlier Notification from Industries which had stared production after the Notification dated 11th November, 1970 came into force.
Rule 42A was introduced in the Gujrat Sales Tax Rules, 1970, whereby on fulfilment of certain companyditions, a New Industry granted drawback, set off or refund of the whole or any part of the tax in respect of the purchase of raw material, processing materials and machinery or packing materials used in manufacture of goods for sales.
A new industry would enjoy the benefit of this numberification for a period of five years from the date of companymissioning of the industry as stated in the eligibility certificate.
Having regard to the facts of the case, it is number necessary to go into this companytroversy.
However, a companyy of the Notification dated April 29, 1970, issued under Section 49 2 of the Gujarat Sales Tax Act, 1963, has been included in the paper book.
The appellant had stated in the petition that on 31st August, 1970, it had set up the factory premisses at Dhoraji at a companyt of Rs.38,000/ .
This was long before the exemption Notification dated 11th November, 1970.
The companytention made on behalf of the appellants is that the solvent extraction plant at Junagadh was set up by the appellant on the strength of assurance made out by the Government in the press statement, the speeches made by the Chief Minister and the Finance Minister on the floor of the Legislative Assembly, and also the Notification issued on 11.11.1970.
A N D CIVIL APPEAL NO.1011 OF 1977 Vijay Oil Mills Co. Versus The Assistant Commissioner of Sales Tax and others J U D G M E N T SEN, J. CIVIL APPEAL NO.951 OF 1976 The appellants are manufactures of edible oil and have their own solvent extraction plants at Junagadh.
The Government was estopped from withdrawing the benefits by removing the appellant from the list of eligible industries by the subsequent Notification dated 17th July, 1971.
It is doubtful whether such an industry was at all entitled to any benefit of the Notification dated 11th November, 1970.
The case of the appellants is that on or about September 9, 1969, a press numbere issued by the State Government that New Industries will be granted exemption from Sales Tax for a period of five years from the date of companymencement of production.
