Incentives for new industries could not be denied by relying on a later notification where the earlier order still applied.

The earlier Government order dated 30.10.1982 granted a five-year package of incentives and concessions to new industries from the commencement of commercial production, subject only to the exclusions in its appendix, and it did not impose any manufacturing-activity requirement. The subsequent notification dated 31.03.1983 did not repeal the earlier order, so both operated concurrently. As the appellants had commenced production while both notifications were in force and did not fall within any excluded category, the department could not deny the benefit available under the earlier order. The denial of incentives was therefore unsustainable.

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Issues: Whether the appellants were entitled to incentives and concessions under the Government order dated 30.10.1982, and whether the department could deny the benefit by relying on the subsequent notification dated 31.03.1983.

Analysis: The appellants had commenced production in new industries when both notifications were in force. The earlier Government order granted a package of incentives and concessions for five years from the commencement of commercial production to all new industries, subject only to the exclusions stated in the appendix, and there was no reference in it to any manufacturing activity requirement. The later notification did not repeal the earlier one, and both continued to operate. Since the appellants did not fall within the excluded category, the department was not justified in ignoring the earlier notification and refusing the benefit available under it.

Conclusion: The appellants were entitled to the benefit of the notification dated 30.10.1982, and the denial of incentives based on the notification dated 31.03.1983 was unsustainable.

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