1996 (1) TMI 405

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....g that the deferral of sales tax shall not exceed Rs. 7.89 lakhs beginning from the month in which the certificate holder's unit commences its commercial production, i.e., from September 28, 1991 to October 27, 2000. It is not in dispute that the petitioner commenced commercial production. For the year 1993-94, the sales tax deferral for Rs. 30,553, was granted. On August 7, 1995, the Deputy Commercial Tax Officer, Krishnagiri, issued a notice to the petitioner in which he stated that during the year 1994-95, the petitioner has not manufactured any commodity for a continuous period of 6 months and therefore he is ineligible to obtain the benefit under the Interest Free Sales Tax Deferral Scheme. He extracted condition No. 9 of the agreem....

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....s available only when the product manufactured in the new industry is exigible to sales tax. Whereas in the year 1994-95, though there was commercial production, the product manufactured was only maize flour which is not exigible to sales tax in Tamil Nadu. The Deputy Commercial Tax Officer has not indicated on what basis he has come to a conclusion that the new industrial unit for which the deferral scheme is applied should manufacture only products exigible to sales tax. Even at the time of hearing of this petition, no material is placed before this Tribunal which may show that the benefit of the deferral scheme is available only if the unit manufactures exigible commodities. We have already referred to clause 9 of the deferral sche....