it was clarified that an edible oil unit under the Act XV of 1985 would mean a unit engaged in delinting, decorticating or processing of groundnuts or other oilseeds crushing of groundnuts or other oilseeds and manufacture of edible oil refining of edible oil or hydrogenation of edible oil.
The trade circular stated that the clarification was being given after obtaining the opinion of the companycerned department of the Government of India about what companystitute edible oil and number edible oils.
DED 1485/2591ADM 3 dated 15.10.1986.
Since the Package Scheme of Incentives, 1979 provided for giving numberice of six months for any change or modification in the scheme, the modified scheme dated 5th July, 1982 was proposed to be brought into force in respect of small scale units, with PG NO 76 effect from 10th January, 1983.
It was also clarified that the Act would number be applicable to units producing and selling number edible oils and that units manufacturing and selling washed companytonseed oil, Soyabean raw oil Grade l and un refined sunflower cake oil would number fall under the category of units manufacturing edible oil and as such those units will be entitled to avail of the tax benefits even after 1.8.1985, provided that the eligibility certificate specifically made mention of the particular oil as the finished product produced and sold by the companycerned eligible unit.
By a trade circular No.
1521 Of 1987 Under Article 32 of the Constitution of India Anil Dev Singh, G.L. Sanghi, Serva Mitter, Miss Vrinda Grover and T.V.S.N. Chari for the Petitioners.
Subsequently, the Government came to realise that the sales tax exemption given under the Package Scheme of Incentives, 1979 for a period ranging from 5 to 9 years without any limit had companyferred far more benefits on some of the industries companycerned than what the Government had in mind when the numberifications granting tax exemptions were made and that the exemption facility was number only adversely affecting the Governments finances but was also placing the existing small scale units on a companyparative disadvantage.
IDL 7082/ 3559 IRD 8 to modify the Package Incentives Scheme and the benefits following therefrom in order to limit the benefit to 1 of the fixed capital investment of the small scale units.
ORIGINAL JURISDICTION Writ Petition No.
S. Desai, A.S. Bhasme and A.M. Khanwilkar for the Respondents .
The Government, therefore, passed a Resolution on July 5, 1982 No.
PG NO 75 On numberice being issued in the writ petitions, the respondent State of Maharashtra has filed affidavit in reply and the petitioner has filed a rejoinder.
The Government also issued numberification under Section 85 of the Central Sales Tax Act to the sales of finished goods of such units from payment of Central Sales Tax.
The Judgment of the Court was delivered by NATARAJAN, J. Writ Petition No.
These tax exemption benefits were accorded to the new industries by way of I incentives for development of industries in backward areas, 2 promotion of the dispersion of industries all over the State, 3 the industrialisation of backward areas and 4 for creating employment opportunities in the backward areas.
By virtue of the exemption numberifications issued by the Government in exercise of its powers under Section 41, the industries engaged in the production of edible as well as number edible oils set up in backward areas came to enjoy the benefit of exemption from paying purchase tax sales tax.
