Tax remission entitlement fixed by the law in force when eligibility crystallises; later amendment could not extend benefit to excluded units.

A tax remission entitlement under section 10G read with rule 48G was treated as a substantive benefit that crystallises when the industrial unit first becomes eligible under the governing law. A later amendment extending the remission period did not automatically enlarge that accrued benefit, because the amendment applied only to industrial units established and commissioned for the first time on or after 1 June 1993. An unit set up and already liable to tax before that cutoff date did not satisfy the amended class condition, so the amended rule could not be invoked to extend its remission period.

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Issues: Whether an industrial unit that had already become eligible for tax remission under section 10G and rule 48G could claim the benefit of the amended provision extending the remission period and enhancing the extent of remission; and whether a unit established and commissioned before the amended cutoff date fell within the amended rule.

Analysis: The entitlement to tax remission under section 10G of the Bengal Finance (Sales Tax) Act, 1941 read with rule 48G of the Bengal Sales Tax Rules, 1941 was held to be a substantive benefit fixed with reference to the law in force when the unit first became liable to tax and when its eligibility commenced. An amendment enlarging the remission period does not automatically alter that accrued position unless the amended provision itself so provides. The amended rule also introduced a new class condition by limiting its application to industrial units established and commissioned for the first time on or after 1 June 1993. A unit that had been set up and had already incurred tax liability before that date did not satisfy the amended eligibility condition.

Conclusion: The amended rule did not apply to the applicant-company, and its claim for extension of the eligibility period failed.

Final Conclusion: The decision confirms that a tax remission entitlement is governed by the statutory regime existing when the right crystallises, and a later amendment extending the benefit cannot be invoked by a unit outside the amended class.

Ratio Decidendi: A substantive tax incentive or remission right, once crystallised under the governing law, is not enlarged by a subsequent amendment unless the amending provision clearly makes it applicable to the earlier-acquired entitlement, especially where the amendment also narrows the class of eligible units.

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