Sales tax incentive eligibility under the Central Sales Tax Act remains available where withdrawal notification was ineffective for intervening units.

The Sales Tax Incentive Scheme, 1987 extended exemption to eligible new industrial units, including oil extraction or manufacture, under both the Rajasthan Sales Tax Act and the Central Sales Tax Act. A later notification withdrawing the Central sales tax benefit was treated as ineffective for units that began commercial production during the intervening period, where no public interest was shown to justify the withdrawal. As the unit here commenced commercial production on 2 January 1991 and sought the certificate thereafter, it remained entitled to the concession under the Central Sales Tax Act, and the Tribunal's view granting that benefit was upheld.

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Issues: Whether the respondent's oil extraction/manufacturing unit, which commenced commercial production during the period when the Central sales tax incentive was withdrawn, was entitled to an eligibility certificate and exemption under the Sales Tax Incentive Scheme, 1987.

Analysis: The incentive scheme initially extended exemption to new industrial units, including oil extraction or manufacture, under both the Rajasthan Sales Tax Act and the Central Sales Tax Act. The later withdrawal of the benefit by the notification dated 7 May 1990 was held in earlier Supreme Court authority to be ineffective, so far as Central sales tax was concerned, for units which had started commercial production during the relevant intervening period, the withdrawal not being supported by any shown public interest. The respondent's unit started commercial production on 2 January 1991 and applied for benefit on 30 September 1991. The Tribunal had followed the Supreme Court's ruling that such units remained entitled to the concession under the Central Sales Tax Act.

Conclusion: The respondent was entitled to the benefit under the Central Sales Tax Act, and no interference with the Tribunal's order was warranted.

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