JUDGMENT

S.B. Sinha, J.—Leave granted.

2. The State of Rajasthan pursuant to its industrial policy formulated ‘Sales Tax Incentive Scheme, 1987’ (for short, ‘1987 Scheme’) and ‘Sales Tax New Incentive Scheme for Industries, 1989’ (for short, ‘1989 Scheme). In terms of 1987 Scheme exemption from payment of sales tax of 100% was provided. 1989 Scheme which was notified in the Official Gazette on or about 06.07.1989 was given retrospective operation with effect from 05.03.1987. It was to remain in force upto 31.03.1998. Sub-clause (b) of Clause (1) of 1989 Scheme reads as under :

(b) An industrial Unit, other than the new industrial unit covered by 1985 Dispensation, being covered by the Sales Tax Incentive Scheme for Industries, 1987 (hereinafter referred to as the Old Incentive Scheme) shall have an alternative option to seek the benefits under the New Incentive Scheme.”

Clause 4 of the said Scheme which is relevant for our purpose, reads as under :

“4. Exemption from tax on sales—(a) An industrial unit, which is granted eligibility certificate under this notification shall be exempted from payment of tax on sales made within the State of the goods manufactured by it in accordance with