TaxTMI 
TaxTMI 
2010 (7) TMI 910
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry of Industry, vide Licence No. 3297/SIA/IM/14/95 dated July 3, 1995, for establishing a steel plant in Orissa with an installed capacity of producing 1300 M.T. of structural steel. Subsequently, with the establishment of the steel plant at Bainchua, in the district of Cuttack in Orissa, having a fixed capital investment in land, building, plant and machinery of Rs. 2,35,60,000, the petitioner's industrial unit was registered with the Director of Industries, Orissa, as a medium scale industry, with the date of commencement of commercial production as March 17, 1997. The said industry was granted with eligibility certificate dated December 24/26, 1997, issued by the Director of Industries, Orissa, certifying that the petitioner's industry is a new medium scale industry and is eligible for sales tax concession on raw material, machinery, spare parts, packing materials and finished products, for a period of five years from the date of commercial production, as provided under the Industrial Policy Resolution, 1996 of the Government of Orissa. While the petitioner's industry was enjoying the benefits as a medium scale unit, extended by the State of Orissa under the Indust....
X X X X Extracts X X X X
X X X X Extracts X X X X
....DIC, Jagatpur, granted re-registration to the petitioner's industry as a small-scale unit vide order dated May 8, 2000 (annexure 4). As the petitioner's industrial unit was certified to be a small-scale industry, the petitioner availed of the benefit of tax concession provided by the State Government under the CST (O) Rules and paid tax at one per cent, on all inter-State sales of its finished product. Subsequently, the A.G. (Audit), in course of audit, reported that the petitioner's industry has been wrongly re-registered as a small-scale unit, though it had not exercised the option within the prescribed period of 180 days, as provided in the order of the Government of India dated December 10, 1997. Accordingly, the audit report pointed out that the petitioner's industry has been wrongly availing of the benefit of tax concession granted by the State of Orissa under the CST (O) Rules, applicable to the small-scale industrial units. Pursuant to the audit report, the assessing officer issued notice of reassessment for the assessment years 2003-04 and 2004-05, under rule 10 of the CST (O) Rules. The assessing officer after hearing the representative of the petitioner....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pplication to that effect within a period of 180 days from the date of publication of the said order. The petitioner having not made any such application within the prescribed time-limit, it cannot be classified as a small-scale unit. In this regard, it has been stated that the petitioner submitted a plain paper application dated March 24, 1998 and no action having been taken on the same, the petitioner filed another application in plain paper dated October 8, 1999. Subsequently, the petitioner made an application in proper form dated December 15, 1999, accompanied by necessary documents, which was much beyond the period of 180 days prescribed by the Government of India in its order dated December 10, 1997. It has been further stated in the said counter-affidavit that pursuant to the Government of India Order dated December 10, 1997, the Director of Industries, Orissa, vide its circular letter dated April 7, 1998 (annexure D/4) had clarified that as per the decision taken by the State Government, industries which have been granted incentives as a medium scale unit will continue to receive incentives, as applicable to the original unit, even if they are subsequently registered as s....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as such, within a period of 180 days from the date of publication of the order. Admittedly, the petitioner's industrial unit had been registered as a medium scale industry with the Government of India, Ministry of Industry, for establishing a steel plant in the State of Orissa with an installed capacity of producing 1300 M.T. of structural steel. Subsequently, the petitioner's unit was registered as a medium scale industrial unit with the Director of Industries, Orissa and was issued with a certificate indicating the date of commercial production as March 17, 1997. The petitioner's industry was also issued with an eligibility certificate by the Director of Industries, Orissa, dated December 24/26, 1997, for sales tax concession/exemption on machineries, spare parts, raw materials, packing materials and finished products for a period of five years from the date of commencement of commercial products, i.e., March 17, 1997 to March 15, 2002, under the Industrial Policy Resolution, 1996, of the Government of Orissa. It is not disputed that the petitioner-company has availed of the benefits of sales tax exemption/concession as a medium scale industry. Regarding re-classif....