2007 (12) TMI 420

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....g registration No. 150610289 dated May 4, 1996, "no-objection certificate" dated August 5, 1996 and "sales tax registration certificate" both under the Orissa Sales Tax Act, 1947 and the Central Sales Tax Act, 1956, from the General Manager, District Industries Centre, Ganjam, State Pollution Control Board, Bhubaneswar and Sales Tax Officer, Ganjam 1 Circle, Berhampur, respectively. The petitioner also obtained permission from the Executive Officer, Berhampur Municipality for installation of 100 HP electric motor. Thereafter the petitioner placed orders with the parties from outside the State of Orissa for supply of machineries and equipments which were required to set up industrial unit for manufacturing of PVC pipe and made an application to opposite party No. 4, for grant of "exemption certificate" from payment of octroi on the said machineries and equipments. The petitioner's further case is that the opposite party No. 8, General Manager, District Industries Centre, Ganjam, Berhampur vide his letter under annexure 8 requested the Executive Officer, Berhampur Municipality to exempt the petitioner from payment of octroi on machineries required to set up its unit. When this yi....

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....oration/Municipality/NAC and; (ii) spare parts of machinery, raw materials and packing materials required for such new industrial units shall be exempted from payment of octroi levied by Municipal Corporation/Municipality/NAC for a period of 5 (five) years from the date the industry first goes into commercial production. Relying on this notification it is stated that since the petitioner is an industrial unit and was set up after March 1, 1996 and went into commercial production on August 26, 1997 under the I.P.R. 1996 and was engaged in manufacturing PVC pipes and conduit, the petitioner's case squarely falls under the abovementioned notification of the State Government. In support of his above contention, the petitioner has annexed notification dated June 25, 1997 issued by the Government as annexure 9 to the rejoinder. It is further stated that in view of the Government notification dated June 25, 1997 (annexure 9), the petitioner is entitled for octroi exemption and, accordingly opposite parties Nos. 4 and 5 are liable for refund of the octroi amounting to Rs. 1,31,211.35 which has been collected from the petitioner as per details given in annexure 10 series. It is also sta....

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....payment of octroi on machinery, equipments, spare parts of machinery, raw materials and packing materials as assured under the I.P.R. 1996 and, if so, from which date. It is not in dispute that being inspired by the I.P.R. 1996, the petitioner wanted to establish a new industrial unit under that I.P.R. 1996. I.P.R. 1996, so far as incentive with regard to payment of octroi is concerned, provides as follows:   "11. Exemption from octroi: Machinery and equipments required to set up new industrial units will be exempted from payment of octroi. Similarly, spare parts of machinery, raw materials and packing materials used by an industrial unit for a period of 5 years from the date of its commercial production will be exempted from payment of octroi." In the counter-affidavit filed by opposite parties Nos. 4 and 6, it is stated that under section 188A of the Orissa Municipal Act the Government alone after consultation with the municipality may by notification exempt any class of commodity or any new industry established within the municipality from the levy of octroi provided that in the cases coming under clause (b), the exemption shall be for such period not exceeding fiv....

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....s of machinery, raw materials and packing materials required for such new industrial units shall be exempted from payment of octroi levied by Municipal Corporation/Municipality/NAC for a period of 5 (five) years from the date the industry first goes into commercial production. By Order of the Governor Sd/P. Mohanty. Director, Municipal Administration & Ex-Officio- Addl.Secretary to Government." Now on the basis of section 188A of the Municipal Act and notification dated June 25, 1997 cited above, three things are to be determined, i.e., (i) who is entitled to get exemption from payment of octroi under the I.P.R. 1996; (ii) what is the period of exemption and when it commences; and (iii) what are those goods which are exempted from payment of octroi. A conjoint reading of section 188A of the Municipal Act and Government notification dated June 25, 1997 issued under section 188A quoted above, makes it amply clear that (i) only new industrial units set up on or after March 1, 1996 are entitled to get exemption from payment of octroi under the I.P.R. 1996; (ii) the period of exemption is five years from the date of commencement of commercial production and; (iii) the ....