LexM/S. TATA IRON AND STEEL CO. LTD. versus STATE OF JHARKHAND AND ORS.
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M/S. TAT A IRON AND STEEL CO. LTD.
A
v.
ST A TE OF JHARKHAND AND ORS.
MARCH 30, 2005
[B.P. SINGH AND S.B. SINHA, JJ.]
B
Bihar Finance Act, 1981 :
ss. 22, 23 and 13(/){b)-Jharkhand Industrial Policy 2001-Notification
Nos. 65, 66 and 67 dated 12. 1. 2002-Interpretation of-Facilities of set off C
and adjustment on intra-State sales, inter-State sales and concessional rate of
sales tax on purchase of raw material-Assessee producing steel through Hot
Rolled Mill and Cold Rolling Mill-Claiming exemption under Notifications
dated 12.1.2002-Held, since both Hot Rolled Mill and Cold Rolling Mill are
existing units, one of them having received the benefits under a different D
policy, assessee not entitled to any further relief in terms of the Notification
Nos. 65, 66 and 67 dated 12.1.2002-Bihar industrial Policy 1991-Notification
Nos. 478 and 479 dated 22. 12.1995-lnterpretation of Statutes-Administrative
Law-Promissory estoppel-Applicability of
Assessee-appellant, a manufacturer of steel through its Hot Rolled E
Mill (HRM) was granted an industrial licence for expansion of its existing
industrial unit located in the State of Bihar, which after creation of State
of Jharkhand came thereunder. Under the Industrial Policy, 1995 of the
Government of Bihar, two Notification Nos. 478 and 479 dated 22.12.1995
were issued granting exmption to dealers in respect of tax on purchase of
sale of certain goods manufactured by new/expanded/diversified/ F
modernized units. The assessee, pursuant to the Notifications, undertook
diversification of its product, namely, saleable steel, by establishing a Cold
Rolling Mill (CRM). On creation of State of Jharkhand and extension of
the 1981 Act to the said State, the assessee claimed benefit of the
Notification Nos. 478 and 479 dated 22.12.1995. Assessee's claim was
ultimately allowed by the Supreme Court*. Meanwhile State of Jharkhand
declared its Industrial Policy 2001 and issued Notification Nos. 65, 66 and
67 dated 12.1.2002 granting facilities of set off and adjustment on intra-
state sales, inter-state sales and providing for concessional rate of sales
tax on purchase of raw material, to dealers in respect of new industrial
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1207
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1208
SUPREME COURT REPORTS
[2005] 2 S.C.R.
A units as well as the existing units.
The assessee, as regards its existing unit, namely, HRM applied for
eligibility certificate, which was rejected, and ultimately the High Court
held that the assessee as a whole, including its diversification into CRP,
was one existing unit, but as the litigation in relation to CRP was pending
B before the Supreme Court, the matter was remitted granting leave to the
assessee to make a fresh claim under industrial Policy, 2001 on the premise
that if it was found not entitled to the benefit of 1995 Policy in respect of
CRP, it would be able to claim the benefit under the 2001 Policy of State
of Jharkhand. Aggrieved, the assessee filed the present appeals.
c
Dismissing the appeals, _the Court
HELD: 1.1. The appellant started its cold rolled mill in terms of a
fresh industrial licence. It was granted a new industrial licence by the
Ministry of Industry of the Central Government on or about 9.11.1998
for manufacture of cold rolled/galvanized/coated/corrugated/painted/
D varnished steel sheets/strips/coils in the integrated steel plant. It, in view
of the judgment of this Court, * became entitled to the benefit of set off
and/or adjustment from the tax paid on purchase of raw materials in terms
of Bihar Industrial Policy which was in force for 5 years from September
1, 1995. As both Hot Rolled Mill and the Cold Rolled Mill are existing
E
units, and one of them having received the benefits under a different policy,
the appellant is not entitled to any further relief in terms of the
notifications dated 12th January, 2002 .. (1223-E-G; 1232-B-CI
*Mis. Tata Iron and Steel Co. Ltd. v. State of Jharkhand and Ors., (2004)
7 242; referred to.
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t.i. The Government of Jharkhand has declared its Industrial Policy
on or about 25.8.2001, the effective date therefor being 15th November,
2000. Th.e said Policy was put in force from 15th November, 2000. The
Appellant's cold rolled mill as also hot rolled mill, thus, are existing units
within the meaning of the Jharkhand State Policy, in terms whereof if a
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benefit is granted under one policy, no other benefit would be available.
(1223-G-H; 1224-AI
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