Eligibility under industrial incentive scheme turns on scheme-defined sickness criteria, not district tenure or subsidy-related disqualification.

Eligibility for a Sales Tax Incentive Scheme certificate depended on whether the unit met the Scheme's definition of a sick industrial unit, which turned on cash losses in two complete accounting years immediately before 1 April 1987. The period for which the unit had operated at Jaipur was not made a qualifying test, and receipt of a central subsidy or an interest-free loan was not itself a disqualification under the Scheme. The refusal based on these extraneous considerations was therefore unsustainable, and the petitioner-concern was entitled to the eligibility certificate.

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Issues: Whether the petitioner-concern was entitled to an eligibility certificate under the Sales Tax Incentive Scheme for Industries, 1987, and whether the District Screening Committee could refuse the benefit on the ground that the unit had not completed two years at Jaipur and had received subsidy and an interest-free loan.

Analysis: The Scheme defined a sick industrial unit by reference to cash losses in two complete accounting years immediately before 1 April 1987. The duration of the unit's working at a particular district or place was not made the test of eligibility. The Scheme also contained no disqualification merely because the unit had obtained central subsidy or an interest-free loan. The refusal was based on considerations not found in the Scheme and the Committee did not apply the correct legal framework.

Conclusion: The refusal of eligibility was unsustainable and the petitioner-concern was entitled to the eligibility certificate.

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