TaxTMI 
TaxTMI 
2010 (4) TMI 990
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....t. The IFST benefit was granted for this expanded unit by the third respondent herein, vide proceedings dated September 30, 2002. This was also for a period of nine years from the date, the unit commenced its commercial production, i.e., April 1, 2000 to March 31, 2009. The repayment was to start from April 1, 2009 to March 31, 2018. It is stated that the petitioner had started making the repayment. The grievance of the petitioner herein is that while granting the eligibility, particularly, with reference to the expanded unit on September 30, 2002, in paragraph 4.1, deferral was granted as regards the actual sales tax liability on account of general sales tax, additional sales tax, surcharge and additional surcharge liability. However, no reference was made to the Central sales tax liability for the purpose of inclusion in deferral of the sales tax. The petitioner made an application on March 3, 2003, drawing the attention of the SIPCOT to G.O. Ms. No. 376 dated October 27, 1992 and sought for amending the eligibility certificate to include the Central sales tax liability along with general sales tax liability. The petitioner stated therein that only during the audit of accou....
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.... pertaining to the deferral issued under the provisions of the Central Sales Tax Act read with section 17A(1) of the Tamil Nadu General Sales Tax Act. Hence, the SIPCOT is bound to extend the benefit of deferral by amending the eligibility certificate, taking note of the specific notifications issued under section 9(2) of the Central Sales Tax Act read with section 17A(1) of the Tamil Nadu General Sales Tax Act. It is seen from the Notification in G.O. Ms. No. 376 dated October 27, 1992 that in exercise of the powers conferred by sub-section (2) of section 9 of the Central Sales Tax Act, 1956 read with section 17A(1) of the Tamil Nadu General Sales Tax Act, 1959, the Government had deferred the payment of tax payable on sales made in the course of inter-State trade or commerce in respect of new industries as well as industries, which had gone for an expansion/diversification for a period of nine years from the date of commencement of production on or after May 14, 1990. Subsequent thereto, in view of the decision of the Government to phase out the scheme of deferral, G.O. Ms. No. 12, Commercial Taxes Department dated January 23, 2000 was issued. The said notification indicated the ....
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.... to industries in pipeline relating to expansion/diversification for which the Government had issued orders, the third respondent intimated the petitioner that they were awaiting reply from the Government. It is further seen that Notification in G.O. Ms. No. 16, Commercial Taxes (C1) Department dated March 1, 2002 issued under section 8(5) of the Central Sales Tax Act was introduced to add a proviso to the notification dated December 9, 1992; that the notification issued under section 8(5)(a) of the Central Sales Tax Act would not apply to industries in pipeline referred to in G.O.Ms. No. 12, Commercial Taxes Department dated January 23, 2000. The explanatory note to the notification stated that G.O. s. No. 16, Commercial Taxes (C1) Department, dated March 1, 2002 was introduced in view of the decision of the Government to phase out the sales tax deferral as stated so in G.O.Ms. No. 12, Commercial Taxes Department, dated January 23, 2000. Under G.O.Ms. No. 376 dated October 27, 1992, the Government issued a notification under section 8(5)(a) of the Central Sales Tax Act granting exemption on tax payable by an industry set up in Tamil Nadu with an investment of not less than R....
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....cific provision of section 9(2) of the Central Sales Tax Act read with section 17A of the Tamil Nadu General Sales Tax Act in terms of the policy of the Government on deferral as given under G.O.Ms. No. 500 dated May 14, 1990 and other various Government Orders and the notifications issued under the power conferred on the State by reason of specific provision under the Tax Act in terms of section 8(5) of the Central Sales Tax Act, travel on different fields. With the passing of G.O.Ms. No. 12, Commercial Taxes Department, dated January 23, 2000, the Government had decided to phase out the grant of deferral of sales tax. Necessary modifications were also brought in to the notifications issued under section 8(5) of the Central Sales Tax Act. Although the grant of the exemption/concession is not, in any manner, dependent on the notifications issued otherwise under general power of the Government, yet, taking note of the general policy not to grant/restrict the grant of deferral/waiver of sales tax, corresponding notifications were issued in exercise of power under section 8(5) of the Central Sales Tax Act. Thus, wherever an industry comes for an eligibility to be considered in term....