R. K. ABICHANDANI, J. - The petitioners challenge the order made by the Sales Tax Officer (3), Division IV, Baroda, dated May 20, 1994 at annexure C to the petition to the extent of deduction thereunder of Rs. 4,98,01,531 as the sales tax incentives enjoyed by the petitioner during the assessment period and to the extent of not allowing the petitioner-assessee, as sales tax incentives, the turnover tax to the tune of Rs. 14,88,380 and purchase tax to the tune of Rs. 37,52,821. A direction is sought on the respondent No. 3, the Assistant Commissioner of Sales Tax (Administration) for permanently restraining him from applying the provisions of paragraph 8(iii) of the resolution dated June 16, 1987 and paragraph 13(iii) of entry No. 175 of the notification of exemption issued under section 49(2) of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the said Act"). The petitioners have prayed for quashing clause (iii) of paragraph 8 of the resolution dated June 16, 1987 as well as paragraph 13(iii) of entry No. 175 of the notification under section 49(2) of the said Act as arbitrary, illegal and unconstitutional.

2. At the outset it may be mentioned that during the arguments, the learned counsel for the petitioners confined the reliefs sought to the challenge against the provision of paragraph 8(iii) of the resolution dated June 16, 1987 and paragraph 13(iii) of entry No. 175 of the notification issued under section 49(2) of the said Act and the deduction of Rs. 4,98,01,531 in respect of goods transported for sale outside the State as sales tax incentives enjoyed by the petitioner under the order made by the Sales Tax Officer and did not press the challenge in this petition as regards turnover tax and purchase tax on the ground that an appeal was already preferred as regards those items by the petitioners-assessee and that they could be dealt with by the appellate forum.

3. The assessee-petitioner No. 1 is a public limited company having its registered office at Cochin in the State of Kerala. The said company is in the business of manufacturing automobile tyres, tubes and flaps and is a registered dealer under the said Act as well as under the Central Sales Tax Act, 1956, having six depots in the State of Gujarat. According to the petitioners in view of the incentives which were offered it invested large amount for setting up a factory in a backward area of village Limda in Gujarat. There were schemes offering deferred payment incentive under the resolutions dated May 7, 1986 and June 25, 1987 and June 16, 1987 and exemption from payment of sales tax under the notification dated December 23, 1986, for promotion of industries in rural and backward areas and the benefit of these schemes was extended up to March 31, 1993 by the Government resolution dated March 14, 1991. The incentive schemes contemplated grant of cash subsidy, exemption from payment of sales tax and sales tax deferment. The petitioner, being a pioneer unit, claimed benefit of the resolution dated June 25, 1987 which laid down the "Composite Sales Tax Incentive Scheme, 1987 for Pioneer Units". The petitioner-assessee had commenced commercial production from September 16, 1991 and on its application was issued certificate dated March 6, 1992 by the Joint Commissioner of Industries (ID) that the unit was eligible for Composite Sales Tax Incentive Scheme, 1987 introduced by the Government resolution dated June 25, 1987. The said eligibility certificate was a provisional one and a copy thereof is at annexure A/1 to the petition. Thereafter, a certificate dated April 18, 1992 was issued by the Assistant Commissioner of Sales Tax (Administration), Range 4, Vadodara, to the petitioners stating that the certificate was being granted subject to the conditions of the resolution dated June 25, 1987 and subject to the conditions of the Circular bearing No. GSL-343/666/88-89/I(J) dated December 5, 1988. (This circular is to be found in Part IV/39 of the compila