JUDGMENT

S.C. PARIJA, J. : The main dispute raised in these two writ petitions revolves around the question as to whether the petitioner is entitled to pay concessional rate of central sales tax under the Central Sales Tax (Orissa) Rules, 1957 (CST (O) Rules for short) @ 1%, by enjoying the status of a small scale industrial unit, in view of the order issued by the Government of India, in the Department of Industrial Policy and Promotion dated 10.12.1997, under which the existing medium scale industries were given the option to be registered as a small scale industrial unit, by making application in that regard, within 180 days from the date of publication of the said order.

2. The brief facts of the case common to both the writ petitions are that the petitioner’s industrial unit was initially registered as a medium scale industry under Government of India in the Ministry of Industry, vide Licence No. 3297/SIA/IM/14/95 dated 03.07.1995, for establishing a Steel Plant in Orissa with an installed capacity of producing 1300 M.T. of structural steel. Subsequently, with the establishment of the Steel Plant at Bain¬chua, in the district of Cuttack in Orissa, having a fixed capi¬tal investment in land, building, plant and machinery of Rs.2,35,60,000/-, petitioner’s industrial unit was registered with the Director of Industries, Orissa, as a medium scale indus¬try, with the date of commencement of commercial production as 17.3.1997. The said industry was granted with eligibility certif¬icate dated 24/26.12.1997, issued by the Director of Industries, Orissa, certifying that the petitioner’s industry is a new medium scale industry and is eligible for sales-tax concession on raw material, machinery, spare parts, packing materials and finished products, for a period of five years from the date of commercial production, as provided under Industrial Policy Resolution, 1996 of the Government of Orissa.

3. While the petitioner’s industry was enjoying the benefits as a medium scale unit, extended by the State of Orissa under Industrial Policy Resolution, 1996, the Government of India, in the Department of Industrial Policy and Promotion under the Ministry of Industries, issued order dated 10.12.1997 (Annex¬ure-1), re-classifying the categories of industries and providing that an industry in which investment in fixed assets in plant and machinery does not exceed Rs. 3 crores, is to be treated as a small scale industry. The said re-classification was subject to the owners of the industrial units applying for such change of status and getting themselves registered as a small scale indus¬trial unit within 180 days of publication of the said order dated 10.12.1997.

4. As the petitioner had made fixed capital investment of Rs.2,35,60,000.00 and intending to be re-classified as a small scale industry, as per the order of the Government of India dated 10.12.1997, submitted an application dated 24.03.1998, seeking re-classification of its industrial unit from medium scale to small scale. The General Manager, District Industries Centre, Jagatpur, granted a fresh Registration Certificate dated 13.01.2000 (Annexure-2), certifying the petitioner’s existing industry to be a small scale unit.

5. The Government of India subsequently issued order dated 24.12.1999, reducing the investment limit for small scale indus¬trial units from Rs. 3.00 crores to Rs. 1.00 crore. Pursuant to the said order of the Government of India dated 24.12.1999, the registration certificate granted to the petitioner’s industry, as a small scale industrial unit, was cancelled on 26.02.2000, since the maximum investment limit of a small scale industry was re-fixed at Rs.1.00 crore and the petitioner’s industry did come within the said limit. Accordingly, the petitioner was advised to obtain registration as a medium scale industrial unit.

6. The Government of India issued a clarificatory letter dated 14.3.2000 (Annexure-3), in which it was stated that industrial units which had switched o