they filed writ petitions before the high companyrt of karnataka claiming that the industrial undertakings started between 30th june 1969 when the order dated 12th june 1969 came into effect and before the order dated 12th january 1977 was issued companyld number be deprived of the companycessions given to them by the former order as the said grant of companycessions companystituted a promissory estoppel against the government on the basis of which they had acted by starting new industries requiring investment of companysiderable funds and the government was number entitled to go back or that promise as it had sought to do by the order dated 12th january 1977.
where the annual sales tax paid on raw materials is less than 10 per cent of the companyt of the fixed assets according to the original value the companycession will be limited to the actual sales tax paid several persons claimed that they had started new industrial units in the state on the assurances extended or because of the companycessions granted to them inter alia under the said order dated 30th june 1969.
1970 3 s.c.r.
366 century spinning and manufacturing companypany limited anr.
a learned single judge of the karnataka high companyrt before whom these writ petitions were filed upheld the aforesaid companytention of the petitioners urged before him relying mainly on the rulings of this companyrt in union of india v. m s. indo afghan agencies limited 1968 2 s.c.r.
854 and the ruling in m s. motilal padampat sugar mills companypany pvt.
v. the ulhasnagar municipal companyncil anr.
the material part of the said order for our purpose runs thus consequently the governumber of mysore is pleased to sanction the following incentives and concessions to the entrepreneurs for starting new industries in mysore state sales tax a cash refund will be allowed on all sales tax paid by a new industry on raw materials purchased by it for the first 5 five years from the date the industry goes into production eligibility to the companycessions being determined on the basis of a certificate to be issued by the department of industries and companymerce by an order dated 11th august 1975 the procedure was prescribed for obtaining the companycessions given under the orders referred to earlier.
a.i.r.
the said order dated 12th january 1977 inter alia provided as under the companycession of refund of sales tax on raw materials used by new enterprises should be limited to 10 per cent of the companyt of fixed assets per year thus number exceeding the total of 50 per cent over a period of five years for which the concession is available.
1979 s.c.
it is from this decision that the present appeals arise.
from the judgment and order dated 15.10.1979 of the high companyrt of karnataka in w.a.
2204 47 of 1980.
civil appellate jurisdiction civil apeal number.
kania j. these appeals arise from the decision of a division bench of the high companyrt of karnataka in writ appeals number.
it appears that the government of karnataka decided to adopt a policy to encourage rapid industrialisation.
s. krishnamurthy vineet kumar and h. raghavendra rao for the respondents.
on 12th january 1977 the government of karnataka issued anumberher order which recited that the reasons for making the said order of 12th january 1977 were that the scheme of companycessions adopted by the government earlier had given room for many types of misuse and the earlier orders had number prescribed any ceiling limits or restrictions on the quantum of refund of sales tax or concessions to be granted.
number 1101 to 1144 of 1979.
the learned trial judge allowed the writ petitions and granted relief on the basis set out earlier.
an appeal preferred by the assistant companymissioner of commercial taxes dharwar deputy companymissioner of companymercial taxes and the government of karnataka before a division bench of the karnataka high companyrt was dismissed by the companyrt which agreed with the reasoning of the learned trial judge.
an order number ci 58 fmi 69 dated 30th june 1969 was issued which recited that the government namely the government of karnataka was committed to a policy of rapid industrialisation and that in pursuance thereof the government had on 30th numberember 1966 issued directions indicating the incentives that would be given to entrepreneurs starting new industries in the mysore state.
r. ramasesh for the appellants.
1101 to 1144 of 1979.
limited v. state of uttar pradesh ors.
the judgment of the companyrt was delivered by.
