TaxTMI 
TaxTMI 
2009 (9) TMI 890
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....1 with further prayer for issuance of a writ of mandamus to grant exemption as per Government Order dated July 21, 2000. The third writ petition, W.P. No. 38572 of 2003 was filed for direction to produce copy of pipe-line industries in the Union Territory of Pondicherry as was submitted to the Union Government. On April 16, 2004, by impugned order, learned single judge referred to the Government orders and letter written by the Sales Tax Department and held that Indian-made foreign liquor (hereinafter referred to as, "IMFL") industries in pipeline will also be eligible for benefit of exemption under Policy No. 36 of 2000 dated July 21, 2000 and allowed W.P. No. 14436 of 2002 and, consequently, it was held that there was no need to grant any relief in W.P. No. 14435 of 2002 and W.P. No. 38572 of 2003. The learned counsel appearing on behalf of the Union Territory of Pondicherry submitted that learned single judge failed to consider the status prior to April 1, 1999 and, thereafter, the decision of Government of Pondicherry based upon the policy decision of the Government of India to take away sales tax exemption. The Government of Pondicherry also decided on July 19, 2000 t....
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....y been taken away from the scheme of sales tax exemption by the same notification, their claim that they are coming under the pipeline industry category mentioned in the Finance Department notification dated July 21, 2000 is not acceptable. The pipeline industry mentioned in the notification therefore does not include IMFL, genset and soap industries, which were already taken away from the scheme of tax exemption. The further case of the appellant is that the subsequent policy decision of the Government taken on July 19, 2000, clearly reveals that by G.O. Ms. No. 35/99/F2 dated March 30, 1999, the exemption from payment of sales tax in respect of goods manufactured by industries engaged in the production of IMFL, gensets and soaps has been withdrawn from the general exemption available to industries under G.O. Ms. No. 15/74 Finance-CT dated June 25, 1974, with effect from April 1, 1999. Pursuant to this decision, notification in G.O. Ms. No. 36/2000/F2 dated July 21, 2000 was issued withdrawing the exemption to new industries started after July 21, 2000. It was submitted that the observation made at para 22 of the impugned order that the same authority has considered the case....
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....me granting sales tax exemption or withdrawing the same, as referred to hereunder: On June 25, 1974, in exercise of powers conferred by section 19(1) of the Pondicherry General Sales Tax Act, 1967, the Government of Pondicherry issued notification contained in G.O. Ms. No. 15/74, whereby all industries were allowed sales tax exemption for five years, which went into production on or after April 1, 1971. It followed by second notification contained in G.O. Ms. No. 164/86/F6 dated September 29, 1986, issued by the Government of Pondicherry granting exemption to industries in Karaikal and Mahe region of the Union Territory of Pondicherry commencing production after September 20, 1986 for grant of exemption for ten years. The third Notification, G.O. Ms. No. 35/99/F2 dated March 30, 1999, was issued whereby certain addition was made below Notification No. 164/86/F6 dated September 29, 1986, thereby the exemption granted vide earlier notification dated June 25, 1974 and September 29, 1986 were amended to the extent as follows: ". . . the new industries commencing production of any of the following items,- (i) Indian made foreign liquor; (ii) Generators, their spare pa....
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....building or should have been acquired the land or building either by purchase or on lease or on rent; or (c) the industries should have applied for a loan for the project to a bank or financial institution or should have own resources: Provided also that the industries in the pipeline should start production within two years from the date of issue of this notification. 2.. This notification shall come into force with immediate effect. (By order of the Lieutenant-Governor) Dr. R. Padmanaabhan, I. A. S., Secretary to Government" The learned counsel for the appellant, Government of Pondicherry submitted that in public interest the exemption made vide notification G.O. Ms. No. 15/74 dated June 25, 1974 and notification G.O. Ms. No. 164/86/ F6 dated September 29, 1986 having been withdrawn, the respondentcompany is not entitled for exemption. It is neither an "industry", which has already come into existence to get the benefit for the period of their eligibility nor the company can be termed to be a "pipeline industry" for the purpose of incentive or exemption under the first and second proviso to notification dated July 21, 2000, as quoted above. To find out whe....