AI Drafter 
TaxTMI 
TaxTMI 
2007 (12) TMI 423
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....industries as indicated therein. According to the petitioner, the petitioner on being attracted by the incentives indicated in the IPR 1996 set up its industry in village Saura in the district of Khurda for manufacturing aluminium wire rods and other aluminium products with a project cost of more than one crore in order to become a "priority industry". It commenced its commercial production from June 12, 1998. It is stated that the petitioner got the certificate from the Director of Industries, Orissa, vide annexure 6, wherein its industry was given the status of "priority industry". The Director also issued certificate of eligibility to the petitioner-industry for sales tax, concession on raw materials, machinery, spare parts, packing materials and finished products under IPR 1996 (new units), vide annexure 6A. Thereafter, the Director of Industries by letter No. 3SS-256/99.14473/Ind. Cuttack dated November 30, 1999/1/12, vide annexure 6B, intimated the petitioner the amendment made to item No. 6 of the certificate of eligibility for sales tax concession which reads as follows: "Item 6: This unit is located at Saura under Begunia Sub-Division of Khurda is eligible for extens....
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....oducts to be allowed from the date of commercial production to be certified by the General Manager for the purpose indicated in the IPR. The first proviso to column 3 of entry 42A stated that ceiling shall be 100 per cent of the fixed capital investment and second proviso was for labour intensive industrial units which were not priority industries provided for enhancing the maximum limit of the ceiling whereas similar to entry 43A provided for labour intensive unit which were priority industries and in the second proviso part (ii) states that for the priority industries the period of exemption be extended by two additional years and the maximum limit of exemption for sales tax shall be 200 per cent of the fixed capital investment. Paragraph 3 also provided for different ceiling for priority industries with project cost of Rs. 100 crores to provide additional period of exemption. This shows that entry 42A, which is for small-scale industries, post-IPR, 1996 did not mention anything about them being a priority industry. While the notification was subsisting, a subsequent notification under section 6 of the Orissa Sales Tax Act, 1947 came into effect from November 12, 2002 (anne....
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....assessment as well as the confirming orders passed by the first appellate authority and second appellate authority under annexures 3A, 3B, 3C, 3D, 3E, 3F and 3G and to direct for fresh assessment. This case was heard along with W.P. (C) No. 5616 of 2003 and the counter-affidavit filed by the Industries Department in the present case was adopted in W.P. (C) No. 5616 of 2003. Ultimately, the aforesaid writ petition was allowed by this court by judgment dated February 8, 2007 which has been reported in Hi-Tek Powercon Pvt. Ltd. v. Asst. Commissioner of Commercial Taxes, Cuttack [2008] 14 VST 379 (Orissa); [2007] 103 CLT 658. In the present case the Industries Department has filed a counter-affidavit taking a stand that since incentives under priority sector are envisaged for industries having investment over rupees one crore, the notification of the Finance Department takes into account such industries since an investment level of rupees one crore and above falls in the category of medium/large scale. Thus, a priority industry with rupees one crore and above investment which would be medium/large scale industry and since the intention of IPR, 1996 was to give incentives to indus....
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....n purchase of machineries, spare parts of machineries, raw materials, packaging materials and finished products in the manner indicated below: . . . (i). . . (ii) For 'priority industries' the maximum limit of exemption/deferment of sales tax will be 200 per cent of the fixed capital investment and the period of exemption/deferment will be extended by 2 additional years: Provided that in respect of electronic/telecommunication (hardware and software) industrial units the maximum limit of exemption/ eferment of sales tax will be 250 per cent of the fixed capital investment. (iii) For small-scale industrial units with fixed capital investment not exceeding Rs. 10 lakhs the maximum limit of exemption of sales tax will be 200 per cent of the fixed capital investment and period of exemption will be extended by one additional year. . . . " "Priority industries", as defined in paragraph 2.7 of the IPR, 1996, are the categories of industrial units, as mentioned under sub-paragraphs (i) to (xvi) thereof and the project cost of each such industry shall not be less than Rs. 1 crore, which means any industry in the aforesaid sector, if it has a project cost of more....