Nagendra Rai, J.

1. The petitioner has filed the present writ application for quashing the order dated 20th November, 2001 passed by the Assistant Commissioner, Commercial Taxes lncharge, Patna Special Circle, Patna, respondent No.4 holding that the petitioner is liable to pay sales tax after 15.11.2000 on sale of goods earlier exempted by exemption certificate dated 20.12.1995 granted in favour of it under Section 7(3) (b) of the Bihar Finance Act in terms of the Industrial Policy of the State for a period from 1.4.1998 to 31.3.2007 and directed it to make the payment of sales tax on a date specified in the order. A copy of the said order has been annexed as Annexure-1 to the writ application.

2. The petitioner, registered under the Companies Act as a public limited company and having its registered office at Mumbai is engaged in manufacturing cement in different cement factories/units located at different parts in the country. One of the regional offices of the marketing division of the Company is located in the town of Patna. The said unit has been registered as a dealer under the provision of the Bihar Finance Act. Two cement units of the petitioner are located at Sindri in the district of Dhanbad and Jhinkpani in the district of Singhbhum and which were registered under the Bihar Finance Act in Sindri Circle and Chaibasa Circle respectively of the Commercial Taxes deparment.

3. The State Government with a view to accelerate industrial growth issued industrial policy from time to time giving different types of incentives to the industrial units. The exemption from payment of sales tax on finished product is also one of the incentives provided under the said policy. In pursuance of the aforesaid industrial policy, on 22nd December, 1995 by Statutory order No. 479 which was published in the official gazette on the same date, the State Government issued an exemption notification in exercise of power under section 7(3)(b) of the Bihar Finance Act. A copy of the aforesaid exemption notification has been annexed as Annexure-3 to the writ application. According to the said policy decision sales tax exemption has to be granted to the new units or to the existing unit having additional production. The incentives were given for exemption of tax on purchase of raw materials and sale of finished goods in case of new units and sale of additional finished goods due to increased production of the existing units.

4. According to the petitioner in view of the aforesaid policy decision it took expansion of cement work located at Sindri and therefore applied for exemption certificate on sale of incremental goods in terms of the aforesaid industrial policy and was issued an exemption certificate granting exemption from payment of sales tax on the incremental production for a period from 1.4.1998 to 31.3.2007. Thereafter, he was availing of the benefits under the aforesaid policy.

5. On 15.11.2000, two States, namely, the State of Bihar and State of Jharkhand, were created out of the erstwhile State of Bihar. The production unit of the petitioner including Sindri unit with regard to which exemption was granted fell into the territory of Jharkhand State after bifurcation. On 13.10.2001 a notice was issued to the petitioner informing it that after the unit to which exemption was granted has fallen into the State of Jharkhand, exemption granted with regard to payment of sales tax will automatically come to an end with effect from the creation of the State of Jharkhand, i.e. 15.11.2000 and the petitioner-Company is liable to pay tax under the Bihar Finance Act on the sale of cement in the State of Bihar and accordingly, the petitioner was asked to give details of sale made after 15.11.2000 along with a proof of payment of sales tax. A copy of the said notice has been annexed as Annexure-4 to the application.

6. The petitioner filed a writ application being CWJC No. 14312 of 2001 before this Court. This Court directed the petitioner to appe