TaxTMI 
TaxTMI 
2002 (10) TMI 746
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....l area in the town of Patna. 3. The State Government with a view to accelerate the industrial growth in the State of Bihar introduces the Industrial Policies from time to time. By notification dated December 22, 1995 it came out with an Industrial Policy giving several incentives to the new industrial units as well as to the old industrial units having undergone expansion/diversification. One of the incentives was to grant exemption from payment of sales tax on purchase of raw materials and sale of finished products. A copy of the said industrial policy has been annexed as annexure-1 to both the writ applications. The exemption with regard to sales tax on sale of finished goods for new units has been contained under clause 16.2 of the sai....
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....of production of the unit with a ceiling of 100 per cent of the fixed investment made by the unit. 4.. The petitioners units were registered for manufacturing aforesaid four items from wheat. Registration certificates granted by the authorities have been annexed with both the writ applications. 5.. In terms of the industrial policy, notification granting exemption from payment of sales tax on purchases of raw materials and sale of finished goods were issued by the Finance Department, copies of which have been annexed as annexure-2 to both the writ applications. 6.. The petitioners applied for grant of exemption from payment of sales tax in terms of the aforesaid notification clearly stating that the items for exemption were wheat product....
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....aring for the State, on the other hand, submitted that bran is a by-product and not the finished goods and in that view of the matter, the authorities rightly withdrew the exemption granted earlier to the petitioners in terms of the industrial policy. 10.. In view of the aforesaid submission, the only question for consideration is whether bran is a finished goods or not. The industrial policy, as stated above shows that the exemption is given to the finished goods. Both the petitioners-companies have been registered for manufacturing atta, maida, suji and bran. It is not in dispute that bran is also a product like other three products of wheat. It is a commercial product and is known as such in the market. If it is accepted that it is not ....