{"id":182889,"date":"2007-11-29T00:00:00","date_gmt":"2007-11-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/agarwal-salt-company-vs-additional-commissioner-vat-and-on-29-november-2007"},"modified":"2016-01-20T11:34:18","modified_gmt":"2016-01-20T06:04:18","slug":"agarwal-salt-company-vs-additional-commissioner-vat-and-on-29-november-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/agarwal-salt-company-vs-additional-commissioner-vat-and-on-29-november-2007","title":{"rendered":"Agarwal Salt Company vs Additional Commissioner (Vat And &#8230; on 29 November, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Rajasthan High Court<\/div>\n<div class=\"doc_title\">Agarwal Salt Company vs Additional Commissioner (Vat And &#8230; on 29 November, 2007<\/div>\n<div class=\"doc_citations\">Equivalent citations: (2008) 13 VST 443 Raj<\/div>\n<div class=\"doc_author\">Author: S Lodha<\/div>\n<div class=\"doc_bench\">Bench: S Lodha<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>Sangeet Lodha, J.<\/p>\n<p>1. The learned Counsel Mr. Vinit Mathur accepted notices on behalf of the respondents. With the consent of the learned Counsel for the parties, the writ petition is being finally heard and disposed of.\n<\/p>\n<p>2. The petitioner, an industrial unit, was granted the benefit of exemption from payment of tax on the sales made within the State and in course of inter-State trade or commerce of the goods manufactured by it within the State, under the Sales Tax Incentive Scheme, 1987 (in short, &#8220;the Incentive Scheme, 1987&#8221; hereinafter) notified by the State Government vide notification dated May 23, 1987 in exercise of powers conferred under Section 4(2) of the Rajasthan Sales Tax Act, 1954 and Section 8(5) of the Central Sales Tax Act, 1956.\n<\/p>\n<p>3. As per Clause 4(e)(i) of the Incentive Scheme, 1987 the benefit of exemption extended to the petitioner-industrial unit was subject to the condition that after having availed the benefit of exemption, it shall continue its production at least for next five years, not below the level of average production of the preceding five years. Admittedly, the petitioner-industrial unit could not maintain the average production in terms of Clause 4(e)(i) of the Incentive Scheme, 1987.\n<\/p>\n<p>4. Thus, in view of breach of conditions contained in Clause 4(e)(i), the proceedings under Clause 9(b) of the Incentive Scheme, 1987 have been initiated against the petitioner. The learned Additional Commissioner (VAT and I.T.), Commercial Taxes, Jaipur, vide communication dated September 15, 2007 (annexure 2) while proposing to withdraw the benefits extended with retrospective effect, has sought opinion of the District Level Screening Committee, Bikaner in terms of Clause 9(b) of the Incentive Scheme, 1987. The District Level Screening Committee in its turn vide impugned notice dated October 15, 2007 has directed the petitioner to submit his objections, if any, within a period of seven days.\n<\/p>\n<p>5. Admittedly, the Incentive Scheme, 1987 has already been amended vide notification dated April 11, 2007 issued by the Government of Rajasthan whereby the existing condition (i) of Sub-clause (e) of Clause 4 has been deleted with effect from May 23, 1987. However, it has been further provided that if a manufacturer deposited any amount, which is payable by him due to breach of condition (i) of Clause (e) deleted vide notification dated April 11, 2007 it shall not be refunded.\n<\/p>\n<p>5.1 In view of the subsequent amendment in the Scheme as aforesaid, the very foundation of the recovery proceedings initiated against the petitioner vide communication dated September 15, 2007 issued by the Additional Commissioner (VAT and IT), Commercial Taxes, Jaipur, for alleged breach of condition does not survive. The impugned communication\/notice issued by the Additional Commissioner (VAT and IT) and District Level Screening Committee ignoring the said amendment is not sustainable in the eye of law.\n<\/p>\n<p>6. In the result, the writ petition succeeds, and is hereby allowed. The proceeding initiated against the petitioner on the basis of alleged breach of conditions incorporated in Clause 4(e)(i) of the Incentive Scheme, 1987 is quashed. No order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rajasthan High Court Agarwal Salt Company vs Additional Commissioner (Vat And &#8230; on 29 November, 2007 Equivalent citations: (2008) 13 VST 443 Raj Author: S Lodha Bench: S Lodha ORDER Sangeet Lodha, J. 1. The learned Counsel Mr. Vinit Mathur accepted notices on behalf of the respondents. With the consent of the learned Counsel for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,29],"tags":[],"class_list":["post-182889","post","type-post","status-publish","format-standard","hentry","category-high-court","category-rajasthan-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Agarwal Salt Company vs Additional Commissioner (Vat And ... on 29 November, 2007 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/agarwal-salt-company-vs-additional-commissioner-vat-and-on-29-november-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Agarwal Salt Company vs Additional Commissioner (Vat And ... on 29 November, 2007 - Free Judgements of Supreme Court &amp; 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