Dismissed

A.C.T.O.,Spl.Circle,Sriganganagar v. M/S Vikas Wsp Ltd.

Rajasthan HC17 Aug 2023CR/171/2006

Case brief

AI extract

What is this about?

The Rajasthan High Court disposed of connected S.B. Civil Revision Petitions filed by the Commercial Taxes Officer against a Rajasthan Tax Board order regarding tax exemption claims for a Gwar Gum Powder unit. Relying on the Supreme Court judgment in Commissioner Taxes vs. Vikas WSP Ltd., the court held that nothing remained for the revenue to contest.

What did the court decide?

The present revision petitions and pending applications are dismissed.

A.C.T.O.,Spl.Circle,Sriganganagar Vs M/S Vikas Wsp Ltd. — GST and Indirect Tax | Rajasthan HC (2023)

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[2023:RJ-JD:25968-DB]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR

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S.B. Civil Revision Petition No. 448/2006

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Commercial Taxes Officer (at present Assistant Commissioner) Special Circle, Sriganganagar.

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----Petitioner

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Versus

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M/s Vikas WSP Ltd., Udyog Vihar, Sriganganagar.

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----Respondent

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Connected With

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S.B. Civil Revision Petition No. 171/2006

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Commercial Taxes Officer (at present Assistant Commissioner) Special Circle, Sriganganagar.

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----Petitioner

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Versus

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M/s Vikas WSP Ltd., Udyog Vihar, Sriganganagar.

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		----Respondent
For Petitioner(s)	: Mr. Sunil Bhandari
For Respondent(s)	: Nonepresent

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HON'BLE MS. JUSTICE REKHA BORANA

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Order

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17/08/2023

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The present revision petitions have been preferred against the order dated 06.08.2004 passed by the Rajasthan Tax Board, Ajmer in appeal Nos.1551/2003 & 1553/2003 qua the assessment years 1996-97 & 1998-99 respectively.

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The facts of the cases are :-

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a. A Gwar Gum Powder unit was set up by the respondent at Sri Ganganagar, Rajasthan on 22.06.1988 with a capacity of 7 Metric Tonnes (MT) which started its commercial production on 18.02.1989. On 29.09.1990, the respondent set up another unit

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[2023:RJ-JD:25968-DB]

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[CR-448/2006]

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(2 of 4)

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with the capacity of 7 MT. The cumulative capacity of two plants became 14 MT Gwar Gum Powder production per day. Thereafter, the respondent was converted into public limited, under the name and style of M/s. Vikas WSP Ltd.

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b. The respondent by application dated 08.09.1992 applied for registration before the Directorate of Ministry of Industries, Government of India to establish a 100% Export Oriented Unit with the production capacity of 42 MT Gwar Gum Powder per day. To reach this capacity, a new plant with the capacity of 28 MT production per day was set up. Thereafter, the respondent again started its commercial production from 24.06.1994 only after its registration as 100% Export Oriented Unit.

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c. A notification dated 13.06.1994 came to be issued by the State Government in exercise of its powers under Section 4(2) of the Rajasthan Sales Tax, 1954 (for short, "the Act") providing exemption from tax on the sale or purchase made by a 100% Export Oriented New Manufacturing Unit.

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d. The respondent/assessee claimed exemption on all purchases of raw material made in respect of all the three units. The Assessing Officer accepted the claim made by the respondent and granted exemption on all purchases of raw material made in respect of all the three units with production capacity of 42 MT. However, the Commissioner, Commercial Taxes, Rajasthan (for short, "the Commissioner") set aside the assessment order passed by the Assessing Officer in exercise of its power under Section 87 of the Act.

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[2023:RJ-JD:25968-DB]

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[CR-448/2006]

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(3 of 4)

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e. Aggrieved by the order passed by the Commissioner the respondent/assessee preferred appeal before the Rajasthan Taxation Tribunal, Jodhpur (for short, "the Tribunal"). The Tribunal, vide its order dated 21.03.1997, partly allowed the appeal by granting benefit of tax exemption with regard to manufacturing unit with production capacity of 28 MT but denied the claim of tax exemption with regard to the manufacturing unit with production capacity of 14 MT gwar gum powder per day.

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f. Aggrieved by the order so passed by the Tribunal the revenue preferred Writ Petition before this High Court. The respondent/assessee also preferred their cross appeal. The Division Bench of this High Court, vide its judgment and order dated 07.10.2003, dismissed the writ petition filed by the revenue and allowed the writ petition filed by the respondent/assessee. The Division Bench modified the order passed by the Tribunal by granting benefit of notification dated 13.06.1994 on purchases of raw material for all the units.

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Meanwhile, in pursuance to the order dated 21.03.1997 passed by the RTT, the assessment orders qua 14 MT gwar gum manufacturing unit were passed by the Assessing Officer on 01.05.2001 & 31.01.2001. Appeals against the said orders were preferred before the Deputy Commissioner (Appeals) which were partly allowed and second appeals against the said orders preferred before the Rajasthan Tax Board were dismissed vide order dated 06.08.2004. It is against the said order dated 06.08.2004 that the present revision petitions have been preferred by the Revenue.

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[2023:RJ-JD:25968-DB]

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[CR-448/2006]

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(4 of 4)

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Counsel submitted that the appeal preferred by the Revenue against the order dated 07.10.2003 passed by the Division Bench of this Court in D.B. Civil Writ Petition No.2391/1997 has itself been dismissed by the Hon’ble Apex Court in Civil Appeal No.3413/2006 on 27.02.2014. Meaning thereby, the respondent/assessee is entitled to benefit of notification dated 13.06.1994 on purchase of raw material for all the units.

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In light of the judgment passed by the Hon’ble Supreme Court in Civil Appeal No.3413/2006 (The Commissioner Taxes, Rajasthan Jaipur and Anr. vs. Vikas WSP Ltd.) decided on 27.02.2014, nothing survives in the present revision petitions and the same are therefore, dismissed .

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All pending applications, if any, also stand dismissed.

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(REKHA BORANA),J

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57-58/KashishS/-

A.C.T.O.,Spl.Circle,Sriganganagar v. M/S Vikas Wsp Ltd.

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A.C.T.O.,Spl.Circle,Sriganganagar v. M/S Vikas Wsp Ltd.

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C.T.O.,Spl.Circle, Sriganganagar Vs M/S Vikas Wsp Ltd.