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Tata Sponge Iron gets sales tax relief

LEGAL DIGEST

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M J Antony New Delhi
Last Updated : Feb 05 2013 | 2:06 AM IST
The Supreme Court last week dismissed the appeal of the Orissa government and granted sales tax relief to Tata Sponge Iron Ltd. The judgment upheld the decision of the High Court. The company, classified as a large-scale industrial unit in terms of the Industrial Policy Resolution (IPR) 1980, set up a sponge iron factory in Keonjhar district.
 
Under the 1992 IPR, the state government had announced existing industrial units could obtain exemption or deferment of sales tax on finished products and capital investment subsidy provided it had undergone expansion/modernisation/diversification of its unit.
 
The company claimed the benefit of deferment of payment of Sales Tax. When the request was rejected by the state government, the company moved the High Court, which allowed its writ petition. The state government's appeal was dismissed by the Supreme Court on the grounds that the company was entitled to the benefit.
 
Pre-deposit order of Gujarat set aside
 
The Supreme Court last week set aside the judgment of the Gujarat High Court under which Bhavya Apparels (P) Ltd had to deposit Rs 3 crore with the Customs tribunal before its appeal would be heard. The Supreme Court clarified that such an order for pre-deposit under Section 129E of the Customs Act could be passed only when the goods are not in the custody of the Customs authorities. Even then it should not cause undue hardship to the importer. In this case, those aspects were not taken into account by the tribunal or the High Court. Therefore, the Supreme Court remitted the case to the tribunal for fresh consideration in view of the facts of the case.
 
SC's directions to electricity tribunal
 
The Supreme Court last week directed the electricity tribunal in Chhattisgarh to reconsider the petitions challenging the grant of licence by the state electricity regulatory commission to Jindal Steel & Power Ltd for supply of electricity. The state electricity board and the Chhattisgarh Vidyut Mandal Abhiyanta Sangh had opposed the grant of licence. According to them, it violated Section 14 of the Electricity Act. The tribunal had to consider whether the company was licensed to distribute electricity. According to Jindal, this cru cial question has not been answered by the tribunal, as well as other related issues. Therefore, the case was remitted to it for reconsideration.
 
Atlas products' appeal dismissed
 
The Supreme Court last week dismissed the appeal of Atlas Products (P) Ltd against the order of the Delhi HC restraining it from using 'Atlas' as a part of its trade name for selling bicycles. The High Court had restrained Arun Kapur and his company, Atlas Products, from using the word 'Atlas' on a petition filed by bicycle manufacturer Atlas Cycles (Haryana) Ltd. The company was managed by members of the Kapur family and an MoU was signed among them. It reportedly provided that all the three groups, comprising the three brothers and their sons and grandsons, would be allowed to use the name Atlas.
 
SC allows Centre's appeal
 
The Supreme Court has set aside the judgment of the Karnataka High Court and allowed the appeal of the central government in a case involving the rehabilitation fund scheme of an ailing textile mill. The labour union of Shree Shankar Textiles challenged four conditions imposed by the Textile Workers Rehabilitation Fund Scheme as violative of the equality provisions in the Constitution. The High Court struck down the scheme. One of the conditions struck down was that the mill closure must be in terms of Section 25 of the Industrial Disputes Act. The Supreme Court stated that the HC had not given reasons for coming to its conclusion.
 
SC upholds Bombay HC's judgment
 
Vidyut Metallics Ltd won its argument that it was liable to pay only 0.5 per cent octroi duty to the Thane Municipal Corporation for importing stainless steel strips and bringing them to its factory within the limits of the corporation. The corporation had demanded 1 per cent and the company had been paying for a long time, till it found that it was paying more. The Bombay HC had upheld the company's view and the Supreme Court dismissed the corporation's appeal.

 
 

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First Published: Sep 24 2007 | 12:00 AM IST

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