TaxTMI 
TaxTMI 
2009 (6) TMI 1007
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....on to the State Industrial & Investment Corporation of Maharashtra Ltd., (for short SICOM) under the Package Scheme of Incentives,1993 for availing sales tax benefits. Sicom Ltd., after processing the said application issued Eligibility Certificate No. FINC(I)/1993/Deferral/EC-2828 dated 29.9.1994, under Part-I of the Package Scheme of Incentives, 1993. The petitioners unit was given the status of a "pioneer unit". The goods/products eligible under the Eligibility Certificate were television sets and audio systems. The raw material required were mentioned as picture tube, integrated circuits, transistors, capacitors, resistors and other components. The Capital cost of the project was to be Rs. 3882.70. The date of commencement of production....
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....ion of their unit at Wada. The petitioners enclosed a project report. The proposed project cost for this expansion stood at Rs. 205.77 crore. On 13.12.2000, the petitioners thereafter entered into agreements with the State of Maharashtra. By the said agreements, the petitioners bound themselves to the terms and conditions specified and set out in the Package Scheme of Incentives, 1993. On 17.1.1998, the Commissioner of Sales Tax, Maharashtra State, Mumbai, issued Circular No.2 of 1998, whereby Sales tax Incentives are curtailed/restricted/withdrawn by computing the same by dividing the Fixed Capital Investment by 100 and/or by adopting the pro rata method. On 16.1.2001, the Deputy Commissioner of Sales Tax (Incentives & Enforcement) Maharas....
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.... Total capacity / (Old + New). (ii) New fixed capital investment x 100 Total Gross fixed capital investment (Old + New) 5. It means that is deemed expansion unit of 1993 scheme will be eligible for package scheme benefits to the extent of higher percentages as calculated by above two methods and not on entire production of an eligible unit covered under such category." 4. On the basis of the said para 4 and 5 of the Trade Circular, the following conditions were incorporated in the Certificate of Entitlement dated 16.1.2001. They are as under :- "(i) The Unit made it clear that since the condition of identification of production from each of the Entitlement Certificate a prerequisite for availing th....
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....ement Certificate. The Entitlement Certificate is based on the ratio of investments for prorata computation, the benefits shall be available till the time period or the monetary ceiling whichever gets exhausted early. The production to the extent of 21.05% shall be apportioned to the Existing Unit. Corresponding to this production at 21.05% when the sales takes place the liability for payment of taxes shall be discharged by making payment of taxes into Govt. Treasury and the same shall be admitted in returns furnished thereafter. The same proportion is available for procuring raw-material without payment of taxes to suppliers on finishing declarations in respect of Expansion Unit." 5. It is material to note that almost similar conditions....