Court affirms tax exemption for cement unit under prestigious status, rejects Revenue's challenge.

The court upheld the Tax Board's decision, allowing the respondent's cement unit to avail a 75% tax exemption as a prestigious unit. The court concluded that the legislative amendments and the scheme's provisions did not intend to exclude the cement industry from the benefits available to prestigious units, except where explicitly stated. The revisions filed by the Revenue were dismissed, confirming the broader applicability of the scheme's benefits to the respondent's cement unit.

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Issues Involved:
1. Extent of Tax Exemption: Determination of the extent of tax exemption under the Rajasthan New Sales Tax Incentive Scheme, 1989.
2. Classification of Industrial Unit: Whether the respondent's cement unit qualifies as a prestigious unit or is confined to being classified as a large-scale unit.
3. Eligibility for Exemptions: Applicability of specific entries in Annexure "C" to the cement industry and the impact of legislative amendments on eligibility.
4. Interpretation of Legislative Intent: Whether the legislative intent was to exclude the cement industry from specific benefits under the scheme.

Detailed Analysis:

1. Extent of Tax Exemption:
The respondent established a new cement unit with a fixed capital investment (FCI) exceeding Rs. 500 crores and employed more than 250 workers. Initially, the State Level Screening Committee (SLSC) certified the unit for a 25% tax exemption, treating it as a large-scale industry. However, the Rajasthan Tax Board ruled that the unit qualifies as a prestigious unit, entitling it to a 75% tax exemption under item No. 4 of Annexure "C".

2. Classification of Industrial Unit:
The Tax Board rejected the Revenue's contention that the unit does not qualify as a prestigious unit because it is not the first cement unit in the Panchayat Samiti. The Board clarified that the definition of "prestigious unit" includes units with an investment exceeding Rs. 25 crores and employing more than 250 workers, irrespective of being the first in the Panchayat Samiti.

3. Eligibility for Exemptions:
The Tax Board's decision was based on the scheme's amendments, which removed the cement industry from the list of ineligible industries and included it under item 1-E in Annexure "C". This item specified different exemption rates for small, medium, and large-scale cement units. The Board reasoned that since the cement industry was no longer ineligible, it could avail benefits under other specific items like item No. 4 for prestigious units.

4. Interpretation of Legislative Intent:
The Revenue argued that the specific entry for cement units under item 1-E should exclude them from other general benefits. However, the court found that the legislative amendments did not explicitly exclude cement units from the benefits available to prestigious or very prestigious units under items 4, 6, and 7. The court emphasized that the legislative intent was clear where exclusions were explicitly stated, such as in item No. 5 for very prestigious units.

Conclusion:
The court upheld the Tax Board's decision, allowing the respondent's cement unit to avail a 75% tax exemption as a prestigious unit. The court concluded that the legislative amendments and the scheme's provisions did not intend to exclude the cement industry from the benefits available to prestigious units, except where explicitly stated. The revisions filed by the Revenue were dismissed, confirming the broader applicability of the scheme's benefits to the respondent's cement unit.

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