2015 (3) TMI 695

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....ip firm, is engaged in the business of running a petrol pump situated in Okha town of Porbandar district. The petitioner has been given license for such purpose and the petrol pump is in operation since the year 1966. The Government of Gujarat has on certain conditions waived the value added tax on diesel for small fishermen. Essentially such waiver is granted in case of fishermen having mechanized boat of less than 20 meters in length. Initially, such scheme was introduced in the year 1981. By notification dated 7.10.81, the scheme envisaged waiver of full sales tax component on purchase of high speed diesel oil by a trader holding license under the Act which was certified by the Collector of Motor Spirit Taxation for such purpose and who ....

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....ards would be issued. For the boats of the fishermen for the purpose of granting VAT subsidy on purchase of diesel, it would be compulsory to have the boat registered with the Fisheries Department. The registered boat must also have a valid license for fishing. The owner must have the boat insured. 50 per cent of the diesel cards would be distributed to the Gujarat Fisheries Central Cooperative Association Ltd (GFCCA) and remaining 50% cards would be distributed to Government approved fishermen cooperatives situated at ports and fishing centers. Reimbursement of subsidy would be available only upon purchase of diesel from where the diesel card is distributed. Wherever diesel pump operated by the GFCCA is not available, the fishermen could p....

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....the year 1981, the whole purpose of the Government scheme is to provide subsidy of sales tax or VAT, as the case may be, to small fishermen on purchase of high speed diesel. This would necessarily create two price regimes. Small fishermen would purchase diesel at subsidized rate and rest of the consumers would pay the price inclusive of the VAT component. To block the pilferage from time to time, various provisions were made. In the year 2003, it was noticed that the existing scheme of supplying diesel to the cooperatives of fishermen which were recognized and which were operating petrol pumps was not working out quite satisfactorily. In the year 2003, therefore, a major change was introduced. All petrol pumps were allowed to sell such dies....