M/S.Jindal Poly Films Ltd. & Anr vs The State Of Maharashtra & Ors on 10 June, 2013
8. Following its decision in Pee Vee Textiles, The Sales Tax
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VBC 8/41 wp313.10
Tribunal declined to make a reference to this Court on an application filed
before it by the Commissioner of Sales Tax. A Sales Tax Application was
thereafter filed under Section 61 of the Bombay Sales Tax Act, 1959 (The
Commissioner of Sales Tax vs. Pee Vee Textile Ltd.).2 A Division Bench
of this Court in a judgment dated 13 October 2008 dealt with the issue as to
whether the Deputy Commissioner of Sales Tax was justified in imposing
conditions in the entitlement certificate so as to place a ceiling on the
utilization of the quantum of incentives proportionately to the total quantity of
finished products produced. The Division Bench held that the condition
restricting the utilization of incentives in each year proportionate to the
finished products attributable to the fixed assets newly acquired by the
existing unit had not been incorporated either in paragraph 3.8 of the Package
Scheme of Incentives of 1993 or in the provisions of the Bombay Sales Tax
Act, 1959. The Division Bench noted that whereas paragraph 3.8 originally
provided for the grant of incentives to a unit acquiring new fixed assets on a
proportionate basis, this requirement was deleted with effect from 6 July 1994.