Sales tax deferment for large cement units was limited to 50 per cent under the scheme's specific exception.

A large scale cement unit under the Rajasthan Sales Tax New Deferment Scheme, 1989 was confined to the specific exception for cement plants outside the tribal sub-plan area, where investment was Rs. 100 crores or more. The scheme generally treated cement industries as ineligible for deferment, and Clause 4 limited qualifying large-scale units in non-tribal sub-plan areas to deferment of tax only up to 50 per cent of tax liability, subject to the scheme's other restrictions. The unit therefore did not qualify for a broader 90 per cent deferment and was restricted to 50 per cent deferment.

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Issues: Whether a large scale cement unit covered by the Rajasthan Sales Tax New Deferment Scheme for Industries, 1989 was entitled to deferment of tax to the extent of 90 per cent or only 50 per cent.

Analysis: The notification treated cement industries as generally ineligible for deferment by placing them in the ineligible list, but carved out a specific exception for large scale cement plants established outside the tribal sub-plan area. Clause 4 limited such units, where the investment was Rs. 100 crores or more and the unit was located in a non-tribal sub-plan area, to deferment of tax only up to 50 per cent of the tax liability, subject to the other restrictions in the scheme. The appellant's case fell within this specific exception and not within any broader entitlement to 90 per cent deferment.

Conclusion: The appellant was entitled only to 50 per cent deferment and not 90 per cent deferment.

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