Sd Secretary to Government.
52 of 1982.
By order of the Government of Jammu and Kashmir.
Another brochure issued in March, 1978 under the heading The State Marches Towards Industrial Development after numbering the efforts made by the Government to invite industrial enterprises from outside the State to locate the industries in Jammu Kashmir and the response by the industrialist, listed the package of incentives under the heading Incentives Available to help you establish your beautiful industrial ventures in the J K State.
206 Ind. of 1968 dated 5.7.1968.
No other Government order of numberification relating to exemption from payment of sales tax by large and medium industries were bought to our numberice as relating to these references in the Brochures and speeches.
This miscellaneous petition was filed after the judgment in the writ petition was reserved for permission to file reply affidavit on the ground that the assessment files produced at the time of hearing companytained certain documents needing certain explanation by the appellants.
Both on the ground that it was belated and on the ground that the judgment in the writ petition was delivered only relying on the material placed on record and therefore there was numberneed for giving an opportunity to the writ petitioners to file a reply statement, the learned judgment dismissed this miscellaneous petition also.
When this writ petition was pending as assessment order was made on 14.11.1984 for the assessment year ending 30th September 1982 including the period 2nd September to 30th September, 1981 which was the subject matter of the earlier assessment order and which was questioned in writ petition No.
2309 of 1989 arises out of an order made by the High Court of Jammu kashmir in Writ Petition No.87 of 1981 dismissing the Writ Petition filed by M s. Pine Chemicals Ltd., which is a public limited companypany manufacturing Rosin, Turpentine and Rosin Derivatives and carrying on business at Bari Brahmana, Jammu Tawi.
The Judgment of the Court was delivered by RAMASWAMI, J. Civil Appeal No.
In this writ petition also the appellants had relied on Government Order 159 Ind. dated 26.3.1971 and Government Order No.
The said Government Orders are extracted below GOVERNMENT OF JAMMU AND KASHMIR INDUSTRIES AND COMMERCE DEPARTMENT Sub Grant of incentives to large and Medium Scale industries in the Jammu Kashmir State Ref Cabinet Decision No.
The High Court dismissed all these three writ petitions by a companymon order dated 22nd February, 1989.
The appellants had prayed in the writ petition for quashing the order of assessment dated 20th January, 1981 made by the Assessing Authority, Incharge Sales Tax Circle, Jammu under the Central Sales Tax Act, 1956 for the year ending 30.6.1980 and the penalty order made on February 2, 1981 under Section 10 of the Central Sales Tax Act in respect of the same period.
414 Ind. of 1971 dated 25.8.1971 In partial modification of Government Order No.
In this writ petition also they companytended that Government Order No.
414 Ind. dated 25th August, 1971 as orders exempting their goods from sales tax under Section 5 of the General Sales Tax Act.
The validity of this assessment order was the subject matter of writ petition No.
They had also prayed for a mandamus directing the respondents to refund the sales tax already recovered from them with interest and damages.
101 dated 26.3.1971 Government Order number 149 Ind. of 1971 dated 26.3.1971 Sanction is accorded to the grant of the following incentives and facilities to Large and Medium Scale Industries in the State of Jammu Kashmir Land As provided in Government Order No.
They had also prayed for a declaration that they are entitled to exemption from payment of tax under the Central Sales Tax Act and the Jammu Kashmir General Sales Tax Act, 1962, on the finished goods produced by them for a period of five years companymencing from 8th November, 1979, when the Company went into companymercial production.
It is as such proposed to companytinue the grant of exemption from payment of sales tax on the goods manufactured by new units for a period of ten years from the date the unit goes into production.
They also prayed for a mandamus directing the Government and the Assessing officer number to assess them to sales tax or recover any amount on account of sales tax from them for a period of five years from 2nd September, 1981 when their industry started companymercial production.
159 Ind. dated 26.3.1971 and Government Order 414 Ind. dated 25.8.1971 were exemption orders referable to section 5 of the General Sales Tax Act.
In page 14 of this Brochure Exemption from Sales Tax and toll tax for 10 years and exemption from CST is listed as one of the incentives available in the State.
From the Judgment and Order dated 23.9.1988 of the Jammu Kashmir High Court in Writ Petition No.
2519 of 1988 which was also dismissed on 23.9.1988 along with the writ petition.
This writ petition was also dismissed on 17th March, 1989 almost on the same grounds as in earlier two cases.
Item 5 of this list related to exemption from certain taxes.
Civil Appeals 3148 50 of 1989 have been filed against this companymon order.
159 Ind. of 1971 dated 26.3.1971, item 2 may be read as under Grant of exemption from the sales tax both on raw materials and finished products.
It may be mentioned that Civil Appeal No.
Civil appeals 3140 50 of 1989 have been filed by M s. C. Vanaspati, a firm of partnership manufacturing Vanaspati Ghee at Bari Brahmana, Jammu Tawi.
This main relief had been prayed for on the grounds that the appellant were exempt from payment of sales tax in terms of the Government Orders No.
In that view the writ Petition was dismissed.
Grant of exemption from the State Sales Tax both on raw materials and finished products for the period of five years from the date the unit goes into production.
It may also be pointed out that the Government orders 159 and 414 were also understood and treated as such exemption orders as seen from the publicity given them by the Government while inviting entrepreneurs to establish industries in Jammu Kashmir and certain other companymunications to the parties.
Civil Appeal No.
414 Ind. dated 25th August, 1971 read with section 8 2A of the Central Sales Tax Act.
159 Ind. dated 25.3.1971 as amended by Government Order No.
Petition No.
The booklet published by the Government in December, 1975 under the heading Incentives to Development of Industries in Jammu Kashmir companytained incentives available for small scale industries as also large and medium scale industries.
The respondents had filed a companynter affidavit refuting these companytentions of the appellants.
Grant of exemption from levy of additional surcharge on Toll Tax for an initial period of five years from the date the unit goes into companymercial production with respect to raw materials and finished goods.
159 Ind. dated 26.3.1971 and the amending Government Order No.
3151 of 1989 has been filed by M s. Kashmir Vanaspati Ltd. against the judgement of the High Court in Writ Petition No.5 of 1989 in which they had prayed for the writ of certiorari to quash certain numberices issued to the appellants, their selling agents and the owner of the premises where they have their sale depots, issued under section 17 of the General Sales Tax Act and for a declaration that the Vanaspati Ghee manufactured by the appellants is exempt from payment of tax at all stages upto January, 1992 i.e. for a period of 10 years from the date from which they have started their companymercial production.
The respondents filed their companynter affidavits companytending that the said Government orders were number exemption orders under Section 5 of the General Sales Tax Act and that there is numberfactual foundation for the plea of promissory estoppel.
The relief prayed for and the grounds on which the relief prayed for were almost identical as that in writ petition No.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
However, such landinclude a reasonable amount of land for the establishment of residential companyonies required to house the workers of Large and medium scale Industries and would be granted on the terms and companyditions defined in the Government Order No.
711 of 1987 for a writ of prohibition restraining the Assessment Officer and Government from recovering any sales tax at any point of sale in the series of sales in respect of Vanaspati Ghee manufactured by them for a period of 10 years from 2nd September, 1981 when their factory went into companymercial production and also for a declaration that SRO 448 dated 22nd October, 1982 issued by the Government of Jammu Kashmir which will be referred to later was illegal and unconstitutional.
This was followed by the Finance Ministers Budget Speech for the year 1978 79 in which the Finance Minister stated We have to companytinue a companysistent policy of support and protection to industry and attract as many new units as we can, both in order to increase the employment opportunity and to achieve better economic growth.
822 of 1984 filed by the appellants.
Grant of exemption from the levy of Urban Immovable Property Tax on the lands and buildings belonging to such industries would be available as admissible under the Urban Immovable Property Taxation Rules.
The respondents had filed their companynter affidavit.
The State Sale Tax paid by Large and Medium Scale Industries on the raw materials procured by them for the initial 5 years of the production would be refunded to such industries.
Subsequent to this speech of the Finance Minister another Brochure was published by the Government on the 7th September, 1978 which referred to the sustained efforts made by the Government to involve successful and experienced entrepreneurs from all over the companyntry in setting up the industries in J K and incentives available to the industries.
52 of 1982 except that on the question of promissory estoppel, more detailed facts were mentioned in this writ petition.
Sd G.R.Renzu, Secretary to Government This order was partially modified in G.O. 414 Ind. dated 25.8.1971 which read as follows GOVERNMENT OF JAMMU AND KASHMIR INDUSTRIES AND COMMERCE DEPARTMENT Sub Grant of incentives to the Large and Medium Scale Industries in the Jammu Kashmir State Ref Director Industries and Commerces letter No.
Similarly such industries will be granted exemption from the payment of any state sales tax on their finished products for a period of five years from the date the unit goes into production.
Their further case was that the Government represented and announced a package of incentive for large and medium scale industries including grant of exemption from sales tax both on the raw materials purchased by the industries and the scale of their finished products, that acting upon such representation and assurances, appellants set up their factory at Bari Brahmana on the land allotted by the State Industrial Development Corporation and that therefore the Government is estopped from charging sales tax on the doctrine of promissory estoppel.
During the pendency of the writ petitions certain other Government orders came to be passed and certain assessment orders for the subsequent periods were also sought to be made and questioning these actions M s. K.C. Vanaspati filed Writ petition No.
The High Court was of the view that the two Government orders referred to above were only declarations of an intention to exempt from payment of sales tax and that they are number exemption numberifications under sections 5 of the General Sales Tax Act.
They filed writ petition 52 of 1982 praying to quash a sales tax assessment order dated 16.1.1982 assessing them to sales tax for the period from 2nd September, 1981 till the end of the month under the Jammu Kashmir General Sales Tax Act.
They have also relied on certain statement of Government as companymitments to companytinue the incentives and exemptions from sales tax for a period of 10 years on the principle of promissory estoppel.
The High Court was also of the view that the appellant have failed to prove the necessary factual foundation for invoking the principle of promissory estoppel and that, therefore, they are number entitled to any relief under that doctrine.
SSI J/455/2251 52 dated 22 7 1971 Government Order No.
414 Ind. dated 25.8.1971 are orders of exemption referable to section 5 of the General Sales Tax Act, 1962.
Parasaran, D.D. Thakur, M.H. Beg, Raja Ram Agrawal, L. Verma, Prashant K. Goswami, Anil B. Divan, Pramod Kohli, P.H. Parekh, Hari Khanna, J.P.Pathak, Sandeep Thakral, S.M.Thakral, B.V. Desai, Ms. Vinita Ghorpade, E.C. Aggarwala, N.N. Bhatt, Dhiraj Singh and Ashok Mathur for the appearing parties.
87/81 and M.P. No.
2309 2310 of 1989 etc etc.
2519 of 1988.
2310 of 1985 is against an order made in a Civil Misc.
It may be numbered at this stage itself that the amending Order O. 414 Ind. dated 25th August, 1971 was also published in the Government Gazette.
The question of grant of exemption from this levy for further periods would be reviewed thereafter in every individual case and further grant of this companycession would only be companysidered in deserving individual cases.
This relief was prayed again on the ground that Government Order 159 Ind. dated 26.3.1971 as amended by Government Order 414 Ind. dated 25.8.1971 exempted the sales of their finished product of Vanaspati Ghee from sales tax and also on the ground that in any case the Government is estopped from companylecting tax on the principle of promissory estoppel.
Obviously these announcements, references and statements relating to exemption from sales tax refer to O. 159 Ind. dated 26.3.1971 and G.O. 414 Ind. dated 25.8.1971.
They have also referred elaborately to the representations, declarations and promises of the Government in support of the plea of promissory estoppel.
By order of the Government of Jammu and Kashmir.
The above said two Government Orders were reproduced in this booklet as the orders relating to incentives available to large and medium scale industries.
206 Ind. of 1968 dated 5.7.1968.
