JUDGMENT

S.C. PARIJA, J. — These batch of four writ petitions are directed against the orders of reassessment for the years 2000-01, 2001-02, 2002-03, and 2003-04, passed by the Sales Tax Offi¬cer, Dhenkanal Circle, Angul, disallowing the benefit of deferred payment of sales tax extended by the State Government under Industrial Policy Resolution, 1992, which had been allowed in the original orders of assessment and confirmed in appeals and de¬manding tax for the entire period.

2. The facts of the case as detailed in the writ petition are that the Government of Orissa in the Industries Department formulated the Industrial Policy Resolution, 1992, (for short ‘IPR-1992’), which was published in the Orissa Gazette on 1.8.1992. The policies outlined in IPR-1992 was intended to encourage the flow of investment and development of entrepreneur¬ship in the State of Orissa. While financial assistance to the potential entrepreneurs in the form of subsidies and post-production benefits was envisaged, the main thrust of the policy was on creating an environment conducive to the smooth setting up and successful functioning of industries. The said policies detailed in IPR-1992 offered several incentives to the new indus¬tries as well as for expansion/modernization/diversification of existing industrial units, with effect from 1.8.1992, including the incentive for exemption/deferment of sales tax.

3. Para 7.4 of the IPR-1992 provided for sales tax incen¬tive, which reads as under;

“Exemption/deferment of Sales Tax on raw materials, spare parts, and finished products of Small, Medium, Large Scale and Pioneer Industrial Units:

New small, medium and large scale industrial units including pioneer units will be eligible for exemption of sales tax on raw materials, spare parts, and finished products for a period of 5 years subject to a ceiling of 100 percent of fixed capital in¬vestment if the unit is located in Zone-A, 75 percent if located in Zone-B and 60 percent if located in Zone-C. New medium and large industrial units may also opt to defer payment of sales tax on their finished products for a period of 5 years subject to a maximum of 100 percent of fixed capital investment if the unit is located in Zone-A, 75 percent if located in Zone-B and 60 percent if located in Zone-C from the date of commercial production. Deferred amounts in respect of each year will be repaid in fully after the expiry of the period of deferment annually. Period of exemption/deferment allowed for deferent Zones shall be extended by two years for pioneer units. However, defaulters of OSFC/IPICOL dues shall be eligible only after they clear such dues.”

4. In furtherance of the said objectives of IPR-1992, the State Government in the Finance Department issued notification vide S.R.O. No.1093/92, dated 23.9.1992, in exercise of powers conferred under Section 7 of the Orissa Sales Tax Act, 1947 (for short ‘OST Act’), providing therein that the classes of regis¬tered dealers who are certified by the Director of Industries, Orissa, as Medium/Large Scale/Pioneer industrial units in Form E-(92), where fixed capital investment in land, buildings, plant and machinery and other equipment of permanent nature has been made in the State of Orissa on or after the 1st August 1992, shall be allowed to defer payment of sales tax collected and payable in the return prescribed under the OST Act and the Rules made thereunder, on the sale of finished products manufactured/processed by the said industrial units in Orissa subject to conditions and restrictions laid down in the Schedule, which reads as under:

5. Similar notification vide S.R.O. No.1094/92, dated 23.9.1992, was issued by he State Government in the Finance Department providing for deferment of sales tax collected under the Central Sales Tax Act, (for short ‘CST Act’), for the same period, subject to the same limitations, conditions and excep¬tions governing such deferment as provided in the aforesaid notification vide S.R.O. N