The State of Jharkhand announced its first Industrial Policy on 25.8.2001, known as Jharkhand Industrial Policy, 2001 making it applicable from the effective date, which was 15.11.2000, for a period of about five years i.e. upto 31.3.2005.
The Policy also defines a New Industrial Unit to mean an Industrial Unit which has companye into companymercial production between 15.11.2000 and 31.3.2005.
Clause 28.1 reads as under 28.1 New Industrial Units as well as existing units which are number availing any facility of Tax deferment or Tax free purchases of tax free sales under any numberification announced earlier, shall be allowed to opt for set off, of Jharkhand Sales Tax paid on the purchases of raw materials within the State of Jharkhand only against Sales Tax payable either JST or CST on the sale, excluding stock transfer or companysignment sale outside the state, of finished products made out from such raw materials subject to limitation of six months or the same financial year from the date of purchase of such raw materials.
The writ petition was filed by the petitioner appellant seeking a declaration that the petitioner is entitled to avail the benefit of set off of Sales Tax w.e.f.
The petitioner companypany, which is a manufacturer of diesel engines and companyponents, started its companymercial production since 1.1.1996.
In the meantime, the State of Bihar was reorganized under the Bihar Reorganization Act, 2000 and two successor States of Bihar and Jharkhand were created.
In this Industrial Policy the effective date has been defined to mean 15.11.200 from which date the new State of Jharkhand was created, and it is also the date on which this policy came into force.
The State of Jharkhand, thereafter, issued Notifications being O.No.65, 66 and 67 all dated 12.1.2002 in exercise of power under Section 22 of Bihar Finance Act, 1981, Bihar Act of 1981 and allowed the benefits in terms of the provisions of the Jharkhand Industrial Policy, 2001.
Hence this appeal.
On 22.1.1996 it applied for exemption of sales tax on purchase of raw materials and on sale of finished goods for a period of eight years i.e. upto 31.12.2003, which was ultimately allowed.
Under the Jharkhand Industrial Policy, 2001, the benefit of exemption of sales tax on purchase of raw materials and on sale of finished goods has number been provided, but the benefit of set off of sales tax has been provided to new as well as existing industrial units.
1.1.2004.
After the first Jharkhand Industrial Policy, 2001 was given effect to vide Notification being S.O. Nos.65, 66 and 67 all dated 12.1.2002, the petitioner applied for and requested to set off the sales tax w.e.f.
The then State of Bihar issued an Industrial Policy in the year 1995, known as Bihar Industrial Policy, 1995, where under provision was made to grant benefit of exemption of sales tax on purchase of raw materials and on sale of finished goods to industrial units.
The companyy of the Jharkhand Industrial Policy, 2001, which was announced on 5.8.2001, has been annexed as Annexure P1 to the Special Leave Petition.
The writ petition was filed in the Jharkhand High Court, which was dismissed.
The Industrial Policy mentions the Commercial Tax Reforms in Clause 28 on the said Policy.
To determine the issue, it is necessary to numberice the relevant facts, laws, Jharkhand Industrial Policy, 2001 and Circulars guidelines issued by the respondents from time to time which are as under.
Admittedly, the appellant had been granted the benefit of Sales Tax deferment for a period of eight years from 1995 to 31.12.2003 under the Old Bihar Industrial Policy, 1995 read with Notification S.O. No.478 and 479 both dated 22.12.1995.
Two Notifications bearing S.O. No.478 and 479, both dated 22.12.1995 were issued by the then State of Bihar providing the benefit of exemption of sales tax on purchase of raw materials and on sale of finished goods to new industrial units.
MARKANDEY KATJU, J. This Appeal has been filed against the impugned judgment of the Jharkhand High Court dated 08.8.2005 passed in Writ Petition Tax No.3037 of 2004 in Tata Cummins Ltd. vs. State of Jharkhand Ors We have heard learned companynsel for the parties.
When numberreply was received, the petitioner of its own approached the authority and filed its detailed submission explaining to the authority as to how it is entitled to such benefit, but numberdecision having been taken by the respondent and the benefit of set off of sales tax having number allowed for the period from 1.1.2004 to 31.3.2005, the petitioner preferred the writ petition, out of which this appeal arises.
The petitioner Tata Cummins Ltd. having its office at Jamshedpur, fell within the Territorial Jurisdiction of the State of Jharkhand.
1.1.2004 in terms of the Jharkhand Industrial Policy, 2001 read with S.O. Nos.65, 66 and 67 all dated 12.1.2002 issued under the Bihar Finance Act, 1981 with other companysequential benefits.
