RAJESH BALIA, J. - These appeals raise common issues of interpretation of the Rajasthan Sales Tax/Central Sales Tax Exemption Scheme, 1998/Rajasthan Sales Tax/Central Sales Tax Deferment Scheme, 1998, and effect of notification dated September 30, 1999 bringing about a change in the scheme affecting the claim of sick units which are engaged in manufacturing cement but have not availed benefit of exemption from payment of tax or deferment of tax previously. Hence are heard and decided together.

It will be appropriate that before we set out the issues requiring consideration, we notice the facts relevant to these appeals. The State of Rajasthan in exercise of powers conferred on it under section 15 of the Rajasthan Sales Tax Act, 1994 and section 8(5) of the Central Sales Tax Act, 1956 notified a consolidated scheme extending exemption from payment of tax for certain industrial units known as the Rajasthan Sales Tax/Central Sales Tax Exemption Scheme for Industries, 1998 (hereinafter referred to as "the Scheme of 1998"). It envisages exemption to certain industrial units from payment of tax on the intra-State sales/inter-State sales of the goods manufactured by them within the State, including by-products and the waste items derived therefrom and the packing material used therein in the manner, to the extent and for the period as specified in the notification.

The appellants-petitioners in these two set of appeals are two manufacturers of cement, who claim that the respective cement units owned by them are sick industrial units. One is J.K. Udaipur Udhyog Limited having its unit at Udaipur and another is J.K. Synthetics Ltd. having a white cement plant at Gotan and a grey cement plant at Nimbahera in Rajasthan. Both of them have not availed benefit of exemption from payment of tax or deferment of tax, previously. The petitions relate to successive financial years of assessment in respect of which claim of exemption from payment of tax/deferment of tax payable is laid by them under the scheme at the rate mentioned in column 3 of item 1 read with item 4(a) of the annexure B of the Scheme. However, the State Level Screening Committee as well as the assessing authority has allowed exemption claim of each of the applicants only to the extent of 25 per cent of tax in each year as per column 3 of item 3 of annexure B of the Scheme.

So far as J.K. Udaipur Udhyog Limited is concerned, it submitted its application in all respects with all requisite details to the State Level Screening Committee claiming benefits under the said scheme as a sick unit on June 17, 1999 and completed application certificate was issued to the petitioner-company with effect from July 26, 1999. The company started availing the benefits of the exemption under the scheme with effect from August 1, 1999 in terms of clause 4(h) of the scheme and it stopped charging/collecting the sales tax in proportion as per the scheme existing on that date. According to the Scheme as on July 26, 1999/August 1, 1999 the petitioner as a sick unit was entitled to 100 per cent tax exemption during the first year of specified period of eligibility and 90 per cent in the second year, 80 per cent in third year and 70 per cent in fourth year and so on at declining rate up to 30 per cent until last year of its eligibility period of exemption if the maximum limit of exemption is not reached earlier.

On December 13, 1999, the State Level Screening Committee, which is the sanctioning authority under the said Scheme, classified the petitioner as a sick unit under item No. 4(a) of annexure "B" annexed to the Scheme and eligibility certificate was issued on that basis to the petitioner. The exemption to which the company was entitled to avail was described thus :

"The maximum duration for availing the benefits shall be 11 years and the maximum benefits shall be limited to 100 per cent of the Eligible Fixed Capital Investment, i.e., Rs. 10,505.74 lacs. The quantum of benefits shall be 25