TaxTMI 
TaxTMI 
1996 (6) TMI 332
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....dies, interest-free sales tax loans, sales tax holiday, power tariff concession, etc., for a period of five years from the date of commencement of the production. The eligibility of the small-scale unit has to be determined by the authority in accordance with the guidelines prescribed. The petitioner applied for eligibility certificate to avail the abovesaid incentives. Initially a temporary eligibility certificate was granted by the General Manager, D.I.C., Ranga Reddy District, Balanagar. In the final eligibility certificate issued to the petitioner, certain conditions were prescribed. Condition No. I in column 10 which is assailed in this writ petition, reads as follows: "The SSI unit is not entitled to collect sales tax from the consum....
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.... petitioners, the real incentive that is intended under the G.Os., is cash subsidy of the sales tax amount which they could collect during the tax-holiday period without any condition for payment, thus placing them in a better position than the large scale and medium scale industries. According to the learned counsel, 'tax-holiday' should and can mean only that. We are unable to agree with this submission. There is no doubt that if they are allowed to collect sales tax and appropriate the same without paying it to the state, they would be much better off, but we do not understand the G.Os., as giving them that gift. The G.Os., have provided for 'investment subsidy' separately to small, medium and large scale industries. As regards sales tax....
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....purchase aforesaid at the same rate at which but for the existence of the aforementioned circumstances, the tax would have been leviable on such goods under section 5 or section 5-A or section 6. " In the circumstances enumerated therein, sections 5 and 6, relieve a dealer from payment of tax. According to section 6-A of the AR General Sales Tax Act every dealer who purchases any goods from a registered dealer has to pay tax on the turnover relating to purchase of such goods at the same rate at which tax would have been payable but for the existence of the circumstances mentioned in sections 5 and 6. In our view, invoking section 6-A is somewhat misconceived. The person who enjoys exemption under section 9 of the Act cannot be permitted t....