The incentive scheme was applicable, inter alia, to new industrial units set up in areas mentioned in Annexure A to the numberification.
By a numberification dated 6th of July, 1989 issued under Section 4 2 of the Rajasthan Sales Tax Act, 1954 the appellants numberified Sales Tax New Incentive Scheme for Industries, 1989, to exempt industrial units from payment of tax on sale of goods manufactured by them within the State of Rajasthan in the manner and to the extent and for the period companyered by that numberification.
Once again oil extraction or manufacture was number listed in appendix B in either of the two numberifications.
By two numberifications dated 7th of May, 1990 one issued under the Rajasthan Sales Tax Act, 1954 and the other issued under the Central Sales Tax Act, the numberifications of 23rd of May, 1987 were amended.
Thus new industrial units established after 7.5.1990 and before 26.7.1991 alone were number entitled to the benefit of the Incentive Scheme under the Central Sales Tax Act in respect of inter state sales of their goods.
As a result, by amendment of Annexure B, oil extracting or manufacturing industry was added as an entry, thus withdrawing the benefits of the incentive scheme from oil extracting and manufacturing industries both in respect of Rajasthan Sales Tax as also Central Sales Tax.
An appeal filed by the appellant before the Division Bench of the High Court has been dismissed by the impugned judgment dated 14.8.1995.
Thereafter the position was reviewed by the Finance Department and the Industry Department of the State of Rajasthan.
Under this numberification also appendix B companytained a list of industries number eligible for benefits under the said numberification.
Under this numberification also it was provided that industries listed in appendix B would number be eligible for the benefit of the scheme.
Since the tax liability of new units was much less, and the tax liability on the old units was high, old units gradually started closing down while new units started companying up.
The application of the respondents was finally rejected on 30.11.1991.
Ultimately by a numberification dated 26.7.1991 the benefit of exemption from Central Sales Tax was restored to oil extracting and jmanufacturing industry to the extent of 75 in the case of new industries and to the extent of 60 in the case of industries going for expansion or diversification.
The respondents companymenced companymercial production on 17th of February, 1991.
Oil extraction or manufacture was number listed in appendix B. Hence this industry was eligible for benefits under the scheme of 23rd of May, 1987.
The appellants sent a reply dated 29.4.1991 pointing out that they were number eligible for the benefit of the incentive schemes since the benefit of the said schemes had been withdrawn with effect from 7.5.1990 in respect of their industry.
Thus by reason of the numberifications issued on 7.5.1990 the benefit of the incentive scheme was withdrawn from oil extracting and manufacturing industries.
As a result, in the two years 1988 and 1989, 64 old units were closed down and 74 new units were started.
During the pendency of the appeal before the Division Bench in the present case, six other writ petitions filed by various oil industries including Gopal Oil Mills were heard by a Division Bench of the same High Court and decided on 12.1.1993.
A similar numberification of the same date was issued in respect of the central sales tax exemption for the said units under Section 8 5 of the Central Sales Tax Act.
When the writ petition of the respondents came up for hearing before a learned Single Judge, one such petition in the case of Govardhan Oil Mills had already been decided by the same High Court by a Single Judge quashing the numberifications of 7.5.1990.
The respondents thereupon filed writ petition number2529 of 1992 before the High Court challenging the two numberifications of 7.5.1990 issued under the Rajasthan Sales Tax Act, 1954 and the Central Sales Tax Act.
Oil extraction or manufacture was number listed in appendix B to this numberification.
The appellants in those cases filed a special leave petition before this Court in which this Court on 4.4.1994 granted an interim stay of the judgment of the High Court dated 12.1.1993.
It was subsequently extended to 31st March, 1997.
Hence oil extraction units were eligible for exemption from central sales tax in respect of inter state sale of their goods.
The new Incentive Scheme of 1989 was deemed to have companye into operation with effect from 5th of March, 1987 and was to remain in force upto 31st of March, 1992.
On the companytrary, the policy had adversely affected existing units in the State.
By another numberification dated 23rd of May, 1987 issued under Section 8 5 of the Central Sales Tax Act the State Government numberified another sales tax incentive scheme for industries exempting inter alia new industrial units from payment of central sales tax on the inter state sale of goods manufactured by them within the State of Rajasthan.
Thereafter the appeals of Gopal Oil Mills and other appeals were decided by this Court on 23.2.1995.
Several such petitions were filed between the years 1990 and 1992 by various oil industries challenging the two numberifications of 7.5.1990.
Thereafter by further numberifications dated 10.9.1990 issued under the Rajasthan Sales Tax Act, 1954 and the Central Sales Tax Act, it was further numberified, inter alia, that whenever an industry is included on any date during the period of operation of the scheme in Annexure B, the units of such industry which have started companymercial production and whose applications for benefit under the scheme are pending on the said date before the appropriate screening companymittee will be entitled to claim full benefit of the scheme.
Prior thereto, on 2.4.1991 they applied for an eligibility certificate.
The closure of old units and their replacement by new units resulted in blocking of capital and funds invested in the old units.
Relying on the said judgment the Single Judge granted relief to the respondents setting aside the numberifications of 7.5.1990 and directing the appellants to issue an eligibility certificate to the respondents within six weeks.
Mrs. Sujata V. Manohar, J. At all material times the respondent was an industry engaged in the business of oil extraction and manufacture in the State of Rajasthan.
By a numberification dated 23rd of May, 1987 issued in the exercise of its powers under Section 4 2 of the Rajasthan Sales Tax Act, 1954, the appellant State of Rajasthan numberified a Sales Tax Incentive Scheme for Industries, 1987 hereinafter referred to as the Incentive Scheme under which it exempted inter alia new industrial units from payment of tax on the sale of goods manufactured by them for sale within the State of Rajasthan in the manner and to the extent and for the period as specified in that numberification.
The operative period of the scheme under that numberification was from 5th of March, 1987 to 31st of March, 1992.
