TaxTMI 
TaxTMI 
1997 (8) TMI 495
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....er the M.P. General Sales Tax Act, 1958 (for short, "the Act") as well as No. KGO/ MHS/646 under the Central Sales Tax Act, 1956. The petitioner is the owner of the solvent extraction plant. In this plant, oil is extracted by chemical process from oil-seeds and oil cakes. Petitioner started commencement of production from June 15, 1983. The industry has been established in the backward area and is entitled to exemption from sales tax under notifications dated October 23, 1981 and June 29, 1982. He is also entitled to exemption from entry tax under the Entry Tax Act. 3.. The petitioner, being the industry because of the notification of the Government (annexure A-1), is entitled to exemption of sales tax for a period of 9 years, as it falls in category "C" of that notification, because it is situated in Khargone. Certificate of registration was issued by the sales tax department in which all the raw material, viz., all kinds of oil-seeds, was mentioned. It is alleged that by virtue of the certificate, the petitioner is entitled to purchase raw material, viz., all kind of oil-seeds without payment of sales tax. Thereafter, eligibility certificate was issued by respondent No. 2, the....
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....ons Nos. 4 and 5(d) of the eligibility conditions and it is contended that it is beyond the scope of the exemption notification (annexure A-1). It is relevant to mention here that the petitioner was granted registration certificate by the sales tax department on August 8, 1983 (annexure F) in which no condition was laid down and it has been mentioned that the petitioner is registered as a manufacturer of oil from oil-seeds. No distinction in this certificate was made of major oil-seeds or minor oil-seeds. Notification A-1 which is the basic notification for grant of exemption, reads as under: "Notification relating to exemption and deferment of payment of tax under M.P. General Sales Tax Act, 1958 F. No. A3-41-81 (35)-ST-V dated the 23rd October, 1981. In exercise of the powers conferred by section 12 of the Madhya Pradesh General Sales Tax Act, 1958 (No. 2 of 1959), the State Government hereby exempts the class of dealers specified in column (1) of the Schedule below who have set up industry in any of the district of Madhya Pradesh specified in the annexure to this notification and have commenced production after 1st April, 1981, from payment of tax under the said Act for the p....
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....industrial units with the Director-General of Technical Development or by any authority duly empowered to do so by the State or Central Government or hold licence under the Industries (Development and Regulation) Act, 1951 (No. 65 of 1951), have fixed a capital investment between Rs. 1 crore (1) (2) (3) and Rs. 10 crores; and district specified in category 'B' of Part II of the annexure; and (c) Are the first to set up the industry in any tahsil of the district of Madhya Pradesh specified in the annexure (d) 9 years, in the case of an industry located in any of the tahsils of a district specified in category 'C' of Part II of the annexure, from the date of commencement of production Eligibility Certificate was also issued by the Director of Industries on November 2, 1985 (annexure B-1) and January 6, 1984 (annexure B-2). In this eligibility certificate, condition No. 4 was imposed which reads as under: "4. The dealer is registered/licensed for the manufacture of the following items. The particulars of the raw materials required are also noted against the items: Item of manufacture Capaci....
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....oner is essentially a soya bean extracting plant and it does not consume major oilseeds. The petitioner has been granted eligibility certificate (annexure B-1), which is in consonance with annexure R-3. In this certificate, it is mentioned that the petitioner can use oil-seeds, oil cakes and all other items with which we are not concerned, but the fact remains that soya bean are not major oil-seeds. The major oil-seeds which have been categorised, are as per the recognition of the State Level Committee (annexure R-3). According to the experts, the oil-seeds having high oil content, are groundnuts, Mahua seeds, etc. The petitioner does not consume high oil content seeds like groundnuts and Mahua seeds, but is essentially a soya bean extracting plant which does not fall in the category of major oils. Therefore, we need not go into the controversy of enquiring into the certificate of registration of the petitioner permitting him to use major oil seeds or not, as it has no relevance so far as this case is concerned. 8.. The petitioner is a soya bean extracting plant which is not included in the category of high level seeds category. The petitioner is a soya bean extracting plant of ....