Honble BALIA, J.–These two revisions are against the common judgment passed by the Rajasthan Tax Board, Ajmer on 18.12.98 allowing the appeals filed by M/s. Binani Cement, a division of Binani Industries Ltd., Binanigram, Pindwara, which relates to the extent of exemption from tax to which the respondent is entitled to avail under the Rajasthan New Sales Tax Incentive Scheme, 1989 under the Rajasthan Sales Tax Act as well as under the Central Sales Tax Act, 1954. Since two separate applications have been made in respect of grant of eligibility certificate to avail benefit under the notifications issued with reference to State Act as well as the Central Act, two proceedings have continued in that regard. However, the basic facts and issue remain the same.

(2). The respondent (hereinafter called, `the company) established a new cement unit within Panchayat Samiti, Pindwara which commenced commercial production in 1997. It engaged itself in the manufacture of cement, the total Fixed Capital Investment (FCI) in the new industrial unit claimed by the company was Rs. 53252.87 Lakhs (Rs. 532.52 crores) but only Rs. 5553.72 Lakhs (Rs. 55.53 crores) were accepted in the first instance as FCI eligible for availing the benefit under the New Incentive Scheme 1989. On that basis, the State Level Screening Committee certified the company entitled to avail exemption of tax to the extent of 25% of the tax imposable only by treating it be to a large scale industry. Though it has not given any reasons for confining the benefit to 25% apparently it refers to Item 1-E of Annexure-C appended to the Rajasthan New Sales Tax Incentive Scheme 1989.

(3). Aggrieved with the quantum accepted as fixed capital investment as well as the percentage of tax exemption specified in the order of SLSC, the company appealed before the Rajasthan Tax Board under the provisions of the said Scheme.

(4). Before the tax Board, it was contended by the revenue that as it is not the first cement unit within the Panchayat Samiti, Pindwara, it is not a prestigious unit falling under Item 4 to avail the benefit of tax exemption at the rate of 75% of the tax leviable and it otherwise remain a large scale unit having FCI over Rs. 5 crores, therefore is to be considered only a large scale unit governed by item 1E of the Annexure C. Under item 1E the determination of extent of exemption was rightly made by SLSC. This contention has not been accepted by the Board by pointing out that the definition of a prestigious unit lay down two alternative requirements to qualify a unit as a prestigious unit which are not required to be fulfilled cumulatively but as a substitute for each other. As the unit in question had invested more than Rs. 25 crores, and employs 336 workmen (more than required 250) it does not remain a condition that it must be the first unit of its kind in the Panchayat Samiti, to claim status of New Prestigious Unit and therefore as the unit falls within the definition of `a prestigious unit it shall be governed by Item No. 4 making it entitled to avail benefit at 75% of the tax leviable to be imposed subject to other limits. The Tribunal has reasoned that since intention for extending benefit of Scheme to cement industry is manifest from deleting the name of cement industry from Annexure `B to the Scheme vide notification dated 10.12.96 and insertion of Item 1E in Annexure `C specifying the limits of exemption in case of cement industry in small, medium and large scale units, and excluding the benefit in the case of very prestigious units, the unit qualified for exemption as a prestigious unit.

(5). So far as the contention of the company about computation of eligible fixed capital investment, to quantify the maximum exemption limit which it could avail during the period of continuance of the eligibility certificate, the matter was remanded back to the State Level Screening Committee for deciding the question afresh in the light of observations made in the Boards order.

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