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In the light of all these, the Excise and Taxation Department issued a notification dated 31.12.1994 to grant exemption from payment of Sales Tax to pioneer industries, bifurcated in different categories with effect from the date of their commercial production against the periods as enumerated in the notification, which was further amended on 27.3.1995 introducing para 1(a) and 1(b). On 6.7.1995, the Department of Industries again amended Rule 27(1) regarding the grant of incentive to Prestigious Cement Units notifying that sales tax exemption/deferment under both Central Tax and Himachal Pradesh General Sales Tax shall be available for a period of 12, 9 and 7 years in respect of category A, B and C blocks, respectively, to new Prestigious Cement Units excluding from its purview the only existing cement unit, as per which the eligible cement units were those, which had come into commercial production within the State of Himachal Pradesh on or after 1.5.1992.

was introduced. Subject to fulfillment of certain conditions a prestigious unit was eligible for both sales tax exemption and deferment. The conditions are as follows:

(i) The unit must be registered with the Empowered Committee as a new industrial unit between Ist May 1992 and 31st March, 1993.

(ii) The new industrial unit must go into commercial production on or after 1st May 1992.

(iii) The said unit must have a fixed capital investment of Rs.50 crores.

(iv) A new industrial unit must employ at least 200 persons on a regular basis.

Stand of the appellant-State is that even if there was a registration with the Empowered Committee on 13.1.1993, the same was of no consequence after the new definition of "prestigious cement industrial unit" was introduced. We find no substance in this submission of learned counsel because of several reasons. Firstly, there was nothing in the Notification dated 1st December, 1994 which required that those units which had obtained registration between 1st May, 1992 and 1st December, 1994 were required once again to seek registration as a "prestigious cement unit". Had it been so there was no question of extending the validity of the registration certificate dated 13.1.1993 after promulgation of Notification dated 1st December, 1994. In fact the final extension granted was upto 30th September, 1995 and there is no dispute that respondent No.1-company commenced its production on 25th September, 1995. Para 27 of the Notification dated 1st December, 1994 provided that prestigious cement unit was entitled to deferment of sales tax as well as from exemption of payment the electricity duty. On 31st December, 1994 the State Government issued a Notification under Section 42 of the Act which granted sales tax exemption for pioneer industries from the date of commercial production. On 6th July, 1995 the Governor of Himachal Pradesh issued another Notification amending the revised rules of 27th March, 1991 regarding grant of incentives to industrial units. By this Notification incentives of sales tax deferment/exemption were restored to cement units. On 30th January, 1996 Exemption Notifications under Section 8(5) of the Central Act and Section 42(1) of the Act were issued by the Governor of Himachal Pradesh. In this Notification, the respondent No.1-Company was expressly named as a prestigious cement industrial unit that would be eligible for the benefit. This Notification also indicated that the respondent No.1-Company was eligible for sales tax exemption for a period of 9 years. It is to be noted that the respondent No.1-company was registered as a dealer on 11th August, 1995 under the Act and a certificate in Form STE-III had been issued by the Director of Industries. When respondent No.1 applied in Form STE-I, exemption certificate in Form STE-II had been granted by the prescribed authority. The denial of benefit contemplated under clause (3) of the Notification related to a finding about evasion of tax either under the Act or the Central Act.

On 28.1.1995 the Director of Industries extended the date of commencement of Commercial production till 30th June, 1995 keeping in view the progress of the plant. The same was further extended up to 30th September, 1995 keeping in view the progress of the plant by order dated 30th June, 1995. By Notification dated 6.7.1995 incentives of sales tax deferment/exemption were restored to cement units. There is no dispute that the respondent- company's commercial production started with effect from 26th September, 1995 and, in fact, the director of Industries by his Certificate dated 24.1.1996 confirmed this position. On 26.9.1995 respondent-company brought to the notice of the concerned department these facts and claimed incentives under the Exemption Notification indicating that commercial production had started. The Empowered Committee confirmed grant of Permanent Registration Certification (Declaration) to the respondent- assessee. On 30th January, 1996 the Exemption Notification was issued. The said Notification has also significance for the present dispute. In the Notification it was clearly stated that the respondent-company was exempted from payment of sales tax. It was expressly named as a "Prestigious Cement Industrial Unit". It was classified as a Category `B' Industry entitled to sales tax exemption for 9 years. The Notification was published on 6.2.1996. On 2.2.1996 declaration was issued by the Industry's department confirming respondent's eligibility for several incentives and more particularly sales tax concessions. By the certificate No. STE(III) the Director of Industries certified that the respondent-company fulfilled all conditions namely registration by Empowered Committee, employment of person belonging to the State and capital investment. On 2.3.1996 respondent- company applied for the necessary benefit in form STE (I) and on 7th June, 1996 Exemption Certificate was issued in form STE (II).