This Policy will remain in force till 31st March, 2005.
Such facility is to be allowed to those industrial units who companye under the purview of set off of tax.
1912 of 2004.
S.O. 65 refers to facility of set off and adjustment on intra State sales.
ADMITTED FACT The Appellant started its companyd rolled mill in terms of a fresh industrial licence.
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 out side the state, of finished products made out from such raw materials subject to a limitation of six months or the same financial year from the date of purchase of such raw materials.
2000 crores but the State says it may be to the tune of Rs.
It was granted a new industrial licence by the Ministry of Industry of the Central Government on or about 9.11.1998 for manufacture of companyd rolled galvanized companyted companyrugated painted varnished steel sheets strips companyls in the integrated steel plant for a proposed capacity of 1200000.00 ton.
2188 of 2002.
The Division Bench of the High Court disposed of the said writ petition upon setting aside the order of the Commissioner of Commercial Tax dated 3.4.2001 and remitting the matter back to the Commissioner of Commercial Taxes for reconsideration of the question as to whether the companyd rolled product is a new and distinct product vis vis hot rolled product.
On or about 10.1.1998, the Government of Bihar acknowledged that the Appellant was going to diversify its plant.
It is registered as a dealer both under the Central Sales Tax Act, 1956 and the Bihar Finance Act, 1981 1981 Act .
With a view to give effect thereto it issued two numberifications bearing Nos.
Aggrieved, the Appellant filed a writ petition before the Jharkhand High Court which was marked as CWJC 1426 of 2001.
A writ petition thereagainst was filed which was marked as WP T No.
These are 2 and 3 against Form IX.
to optimally utilize the available resources of the State in a planned manner and to accelerate the industrial development of the State.
HRM applied for eligibility certificate before the Deputy Commissioner of Commercial Tax stating that it had been engaged in manufacture and sale activities of various iron steel products and other materials.
The said order came to be affirmed by the Commissioner of Commercial Tax by an order dated 25.3.2003.
Each of the Industrial Units along with its monthly Quarterly returns, they will file the following statements in duplicate along with a declaration certifying there in that the items shown in the purchase invoices have been purchased by them and the same have been directly used for production of products for sale.
In terms of the Bihar Reorganisation Act, 2000, the State of Jharkhand was created with effect from 15.11.2000, as a result whereof, inter alia, the 1981 Act was extended to the State of Jharkhand.
478 and 479 dated 22.12.1995 granting exemption to dealers in terms of Section 7 3 b of the 1981 Act in respect of tax on purchase or sale of certain goods manufactured by new expanded diversified modernized units.
An application for grant of Special Leave from the said order was filed before this Court by the Appellant herein and leave having been granted in the appeal, the matter was marked as C.A. No.
Pursuant to or in furtherance of the said Industrial Policy as also the numberifications issued pursuant thereto, the Appellant herein undertook diversification of its product saleable steel by establishing a companyd rolling mill.
478 and 479 dated 22.12.1995 whereupon by an order dated 16.12.2000 the benefit of exemption in respect of its Cold Rolled Product CRP was granted treating the diversified capacity as a new unit.
O. 479 dated 2nd December, 1995 was issued by the State of Bihar in exercise of its power under Clause b of Sub section 3 of Section 7 of the 1981 Act whereby and whereunder exemption was granted to those new industrial units which started production from 1st September, 1995 to 31st August, 2000 on the sales of finished goods produced by them under the terms and companyditions specified therein, clause c whereof reads thus For exemption from sales tax, industrial unit means such unit which manufactures goods for sale and for the purpose of it the meaning of manufacture shall be the same as defined in part 1 of the Bihar Finance act, 1981 Bihar Act No.
In order to qualify for the sales tax incentives a unit undertaking expansion modernization diversification should send intimation to the General Manager, District Industries Centres or the Managing Director, Industrial Area Development Authorities Deputy Commissioner Commercial Taxes as the case may be in respect of Small Scale Industry or the Director of Industries Director, Technical Development and Commissioner Commercial Taxes in case of medium and large industries before undertaking expansion modernization programme.
1400 crores.
Such intimation should be accompanied by detailed expansion modernization diversification proposal giving the specific period of proposed investment.
Such grant of exemption, however, was withdrawn by the Commissioner of Commercial tax in exercise of its suo motu power of revision holding that as both Cold Rolled Product and Hot Rolled Product find mention in the same entry issued in terms of Section 14 of the Central Sales Tax Act, 1957, they are number entitled to the benefits claimed.
This Court by judgment and order dated 25th August, 2004 since reported in 2004 7 SCC 242 held that the product manufactured by the Appellant in its new unit is a companyd rolled mill CRM product and number hot rolled mill product.
These factors companypled with the fact that at numberstage of the proceedings which culminated in the judgment of the High Court, the respondent State had questioned this fact except for the technical ground taken by the Commissioner which is found to be erroneous, we find the ends of justice would number be served by remanding the matter for further inquiry.
EXEMPTION CLAIMED FOR NEW INDUSTRIAL UNIT The Government of Bihar issued an Industrial Policy in the year 1995.
65, 66 and 67 dated 12th January, 2002 were issued thereafter in terms of Sections 22, 23 and 13 1 b respectively.
Three numberifications bearing Nos.
EXEMPTION CLAIMED FOR EXISTING INDUSTRIAL UNIT In the meanwhile the State of Jharkhand declared its Industrial Policy on or about 25.8.2001 for the period 15th November, 2000 to 31st March, 2005 para 28.1 whereof inter alia provided for set off adjustment to dealers in respect of new industrial units as well as the existing units.
2269 OF 2005 SLP C No.
It, in view of the judgment of this Court, as referred to hereinbefore, became entitled to the benefit of set off and or adjustment from the tax paid on purchase of raw materials in terms of Bihar Industrial Policy which was in force for 5 years from September 1, 1995.
Both these rates will be reduced to 2 in view of the provision for set off as aforesaid.
2003 of 2003.
It was granted an industrial licence for expansion of its existing industrial unit located at Jamshedpur for production of steel to the extent of 21 lakh tons per annum.
The process of manufacturing HRM and CRM as companyld be seem from the experts opinion is totally different and the material on record also shows that the plant design for a new unit is for the purpose of manufacturing CRM.
S.O. 66 refers to inter state sales whereas S.O. 67 provides for companycessional rate of sales tax on purchase of raw material and other items at the rate of 2.
BACKGROUND FACTS The fact of the matter is being numbericed from Civil Appeal No.
Whatever may be the figure, the fact still remains that the appellants have invested huge sums of money in installing its new industrial unit.
15419 of 2004.
The Appellant, an existing companypany within the meaning of Companies Act, 1956, is a producer of saleable steel and other alloy products having a production capacity of 17.4 lakh tons.
CIVIL APPEAL NO.
The Appellant claimed benefits of the aforementioned numberification Nos.
By reason of the impugned judgment, while setting aside the aforementioned orders dated 13.3.2002 and 25.3.2003 passed by the Deputy Commissioner of Commercial Taxes and the Commissioner of Commercial Taxes respectively, the High Court held although number finally that the Appellant as a whole, including its diversification into CRP, is one existing unit, but as the litigation in relation to CRP was pending before this Court, the matter was remitted granting leave to the Appellant to make a fresh claim under the Industrial Policy, 2001 on the premise that if it is found number entitled to the benefit of 1995 Policy in respect of CRP, it would be able to claim the benefit under the 2001 Policy of the State of Jharkhand.
15419 OF 2004 B. SINHA, J Leave granted in S.L.P. C No.
65, 66 67 dated 12th January, 2002 issued by the State of Jharkhand pursuant to the Jharkhand Industrial Policy, 2001 falls for our companysideration in these appeals which arise out of judgments and orders dated 12.8.2003 and 16.3.2004 passed by a Division Bench of the Jharkhand High Court whereby and whereunder the writ petition filed by the Appellants herein was disposed of with certain directions.
It is based on these assurances that the appellant invested a huge sum of money which according to the appellant is to the tune of Rs.
It at all material times was and still is producing steel through its Hot Rolled Mill HRM .
5 of 1981 Jharkhand Industrial Policy, 2001 We may, at this juncture numberice certain provisions of Jharkhand Industrial Policy.
28.2 Clause 13 i b of the Adopted Bihar Finance Act, 1981 provides for two 2 rates of companycessional sales tax on purchases of raw materials and other inputs.
At every stage of the companystruction, progress and installation of the machineries, the Government authorities companycerned were informed and at numberpoint of time it was suspected that the new unit was going to manufacture HRM.
It was opined 21Based on a promise made in the industrial policy of the State of Bihar, at every stage the appellants tried to verify and companyfirm whether they are entitled to the benefit of exemption or number and they were assured of that exemption.
Interpretation and application of the numberifications bearing Nos.
The Appellant as regards its existing unit, viz.,
Definitions Effective Date Effective date means 15th November 2000 from which date the new State of Jharkhand has been created, the date on which the provision of this Policy companye into force, i.e. November 15, 2000.
The said application of the Appellant was rejected by the Deputy Commissioner of Commercial Tax by an order dated 13.3.2002 opining that it being a dealer with one registration under Sales Tax Laws, was number entitled thereto.
