Court orders fresh review on tax exemption for new industrial unit in backward area, emphasizes technical reports & personal hearings.

The High Court allowed the petition, setting aside the State Appellate Forum's decision on tax exemption for a new industrial unit in a backward area. The Court directed a fresh consideration, emphasizing the need to review technical reports and provide an opportunity for personal hearings. The State Appellate Forum was instructed to issue a detailed order within six months, with ongoing protection for the petitioner until a final decision. Further proceedings were scheduled before the Forum.

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Issues:
1. Eligibility for tax exemption for a new industrial unit in a backward area.
2. Allegation of hostile discrimination against the petitioner.
3. Consideration of technical reports by the State Appellate Forum.
4. Judicial review of the decision by the Appellate Forum.

Analysis:
1. The petitioner-company established a new industrial unit in a backward area and applied for a tax exemption certificate, which was initially declined by the competent authority. The State Level Committee and the State Appellate Forum upheld the decision, leading to the petitioner approaching the High Court through various writ petitions.

2. The petitioner alleged hostile discrimination, arguing that similar establishments had been exempted while they were singled out for different treatment. The petitioner emphasized that their product involved blending of chemicals, not a refining process, and provided technical reports to support their claim. The Government counsel supported the decision of the Appellate Forum, stating that the matter had been thoroughly examined.

3. The High Court observed that the technical reports submitted by the petitioner were not considered by the Appellate Forum, indicating a lack of application of mind. The Court noted that the decision on exemption eligibility should involve technical experts, but the failure to address the submitted reports showed a deficiency in the review process.

4. Consequently, the High Court allowed the petition, setting aside the order of the State Appellate Forum and directing a fresh consideration of the appeal. The Court instructed the State Appellate Forum to review the case, consider all relevant reports and submissions, and provide an opportunity for personal hearings before issuing a detailed and speaking order within six months. The protection granted to the petitioner was to continue until the final decision by the Appellate Forum. Parties were directed to appear before the Forum on a specified date for further proceedings.

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