STATE.OF H.P. AND ORS. versus GUJARAT AMBUJA CEMENT LTD. AND ANR.

Citation: [2005] SUPP. 1 S.C.R. 684 · Decided: 18-07-2005 · Supreme Court of India · Bench: RUMA PAL · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
STATE.OF H.P. AND ORS. 
v. 
GUJARAT AMBUJA CEMENT LTD. AND ANR. 
JULY 18, 2005 
B 
[RUMAPAL,ARIJITPASAYAT ANDC.K. THAKKER,JJ.] 
Constitution of India, 1950: 
Article 226-Writ petition-Alternative remedy-Availing/exhaustion 
C of-Maintainability-High Court entertained· writ petition notwithstanding 
the existence -Of the statutory remedy-Interference with-Held: In such 
circumstances, the Supreme Court would not reconsider· the question of the 
alternative remedy being efficacious or not. 
D 
H.P.:General Sales Tax Act, I968: 
Sales Tax-"Prestigious cement unit"-Norification dated l.12.I994 
granted exemption from payment of sales ·tax and certain incentives to 
'prestigious cement units' registered with the Empowered Committee between 
L5.1992 and 3I.3.1995-Such units were req~ired to commence commercial 
E production on or after l.5.I992-However, extension of time to commence 
commercial production beyond 1.5.1992 was granted to an industrial unit-
Entitlement to €Xemption-Held:_ Cement manufacturing units registered as 
'prestigious unit' between l.5.I992 and 1.12.1994 were entitled to 
exemption-Such units not required to seek re-registration as a 'prestigious 
cement unit'-Once extension of time to commence commercial production 
F was granted, such units entitled to the benefit of the Notification. 
Sales Tax-AYs 1995-96 and 1996-97-Revisional order-Doctrine of 
merger-Assessment order granted exemption from payment of sales tax fixing 
certain dates of entitlement-Assessee questioned the dates by filing appeals, 
which were dismissed-Revisional Authority did not take note of the said 
G appellate orders-Correct'!~ss of-Held: The assessment order got merged 
with the first appellate orders and, therefore, could not be revised without 
noticing them-In such cases the Doctrine of merger applied. 
H 
Sales tax-Exemption-Notification granted exemption from· sales tax 
684 
STA TE OF H.P. v. GUJARAT AMBUJA CEMENT LTD. 
685 
and certain incentives to units registered with the Empowered Committee- A 
Provisional registration certificate granted to assessee for a certain period-
Assessee applied for renewal before expiry of the said period and deposited 
the requisite fee-But renewal certificate was effectivefrom a date which was 
about two months after the expiry of the provisional certificate-The said 
renewal certificate was also issued much later-However, application for B 
extension of period of validity never rejected-Entitlement to Exemption-
Held: In such cases the question of absence oj a valid provisional certificate 
lost significance-Hence, assessee entitle to exemption from sales tax. 
Central ·Sales Tax (Registration and Turnover) Rules, 1957: 
Rule 12(7)-0bject of-Declaration Form-Form 'C'-Assessee was C 
denied benefit of sales tax exemption on the plea that defective Form 'C' was. 
filed-Assessee 's prayer to rectify the defects turned down-Held: Object of 
R. 12(7) is to ensure that the assessee is not denied a benefit available to 
it under law on a technical plea-Therefore, the provision of filling of 
declaration form along with the return is directory and not mandatory-In D 
a given case, the declaration form could even be filed before the Appellate 
or Revisional Authority-Hence, assessee entitled to sales tax exemption-
Assessing Officer directed to grant opportunity to the assessee to cure the 
defects, if any, in the declaration form-Central Sales Tax Act, 1956. 
Mines and Minerals (Regulation and Development) Act, 1957: 
Section 9-Removal of minerals-Royalty paid-Purchase tax on-
Liability-Held: Royalty is an alternative to dead rent-It is nothing but a 
measure of levy-Royalty is not a payment in respect of any mineral removed 
or consumed-Hence, royalty does not attract levy of purchase tax. 
Words & Phrases: 
"Royalty" and "dead rent"-_Meaning of-In the context of Mines and 
Minerals (Regulation and Development) Act, 1957. 
E 
F 
The respondent was a public limited company incorporated under the G 
Companies Act, 1956 and, inter alia, carried on the business of manufacture 
and sale of cement. The Director of Industries issued a registration certificate 
registering the respondent-company as a 'prestigious unit' whereby certain 
incentives were granted t<Ythe respondent subject to the condition that the 
production should commence by January 1995. However, further extension H 
686 
SUPREME COURT REPORTS [2005] SUPP. 1 S.C.R. 
A was granted to the respondent-company by the Department of I

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