TaxTMI 
TaxTMI 
2021 (6) TMI 674
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....the Petitioner on 15th October, 2005. 2. The background facts are that the Petitioner was initially a Small Scale Industry (SSI) having been registered as such on 21st December 1996, with the District Industries Center, Bhubaneswar (DIC) (Opposite Party No.4). The Petitioner's unit was initially set up for manufacturing air coolers. It started commercial production with effect from 10th April, 1994. The Petitioner had earlier availed of the benefit under IPR-1989. The said benefit stood withdrawn with effect from 1st July, 1999. 3. The Petitioner states that in order to expand its business, it undertook a diversification programme under IPR 1996 for manufacturing emergency lights, moulded furniture, TV sets (both black and white and colour) apart from the existing products being manufactured by it. It accordingly invested Rs. 4,08,35,710/- and communicated this fact of diversification/modernization to the DIC, Bhubaneswar stating that it had in the process qualified as a Medium Scale Industry (MSI). The DIC, Bhubaneswar by its letter dated 29th December 2001, recommended to the DoI i.e. Opposite Party No.2 that the Petitioner's unit should be issued a Priority Industr....
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....the sales tax benefit for an additional two years. The Petitioner contended that this was contrary to a notification dated 2nd February 1999, issued by the State Government, which clarified that all priority industries would be entitled to an additional two years of sales tax exemption. 9. The Petitioner also refers to a Notification No. SRO 141/2000 dated 17th February, 2000 issued by the Finance Department, Government of Odisha, in terms of which, existing industrial units already in receipt of incentives under an earlier notification dated 23rd April 1976, as amended from time to time "immediately before the 1st January, 2000" would continue to avail incentives for the period of their eligibility under the notification. This notification further stipulated that where an industrial unit was 'in the pipeline' as on 1st January 2000, it would be entitled to the incentive under the notification on same terms and conditions if it fulfilled the following criteria as on 1st January, 2000: "i. Industrial unit which is regd. under the Orissa Sale Tax, 1947. ii. Industrial Unit which has been allotted land for the factory. iii. The industrial unit which has a....
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...., 2002 was sought to be revoked and cancelled. 13. This led the Petitioner to file another W.P. (C) No.13181 of 2005 in this Court challenging the order of cancellation. Both the above writ petitions were disposed of by this Court by an order dated 16th November, 2005 the operative portion of which reads thus: "Under the aforesaid premises without expressing any opinion on the merit of both the cases we quash the order dt. 15.10.2005 passed by the Director of Industries, Orissa- Opposite Party No.2 under Annexure-7 and direct Opposite Party No.2 to take a decision afresh after giving a notice of show cause to the petitioner within a period of 4 weeks from today. The Petitioner shall file reply to the show cause within a period of one month from the date of receipt of the same. Thereafter Opposite Party No.2 shall decide the matter on its own merit with accordance with the law. The claims of the Petitioner is that the Industry is a priority Industry and entitled to get the benefit of sales tax exemption for seven years or otherwise shall also be decided by the Authorities dealing with the representation. In the meantime, no coercive action shall be taken against....
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....00, which applied to existing units that had expanded and SRO 140 /2000, which applied to new units and that both were dated 17th February, 2000. It was pointed how since the Petitioner had graduated to a Medium Scale Industry, and was an industry in the pipeline it was covered under SRO 141/2000. It was further pointed out that the tax exemption certificate dated 11th March, 2002 was issued in terms of a Finance Department's notification No. SRO 475 dated 20th July 1996, which became effective on 1st February, 1996. In the aforementioned notification dated 20th July 1996, a new serial number 44 was introduced, which stated thus: "State of finished products of an existing industrial unit, where fixed capital investment has been commenced (for an E/M/D unit) after 1st day of March, 1996." 18. The Petitioner also pointed out in its rejoinder that it was a unit 'in the pipeline' as it satisfied all the conditions stipulated in SRO 141/2000 dated 17th February, 2000 and in fact, the Petitioner figured at Serial No. 24 of a list of such industries prepared by the DoI on 24th March, 2003. 19. This Court has heard submissions of Mr. S. P. Misra, learned Senior Counsel a....
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....r, for the purpose of its expansion, purchased a land on 20th July, 1998 i.e. prior to 1st January, 2000. In other words, the expansion drive was undertaken by an investment made after 1st March, 1996. The Petitioner also applied to the State Bank of India on 8th December, 1999 for finance i.e. prior to 1st January, 2000. It was to commence its production before 1st January, 2002. In fact, it commenced its commercial production on 12th November, 2001. 24. Further, the Petitioner is a multiproduct industry. The dates of production of its various products, as modified by a letter dated 15th September, 2004 of the DoI reads thus: "Product Date of production a. Emergency light - 03.01.2001 b. UPS - 03.01.2001 c. Moulded Furniture & other household goods - 03.01.2001 d. TV sets (B/W & CTV) - 12.11.2001" 25. Indeed, the Opposite Parties have no answer to the above contention of the Petitioner that it was a unit 'in the pipeline' in terms of SRO 141/2000. The Petitioner has also clarified how its agreement with M/s. Nilkamal Plastic Private Limited had no relevance to its claim for sales tax exemption. The mac....