ORISSA SPONGE IRON LTD vs STATE OF ORISSA

The Supreme Court addressed the challenge to the Orissa Industrial Policy Resolution of 1959, specifically its restriction on sales tax benefits to industries that commenced production after April 1, 1986, as per Section 7 of the Orissa Sales Tax Act. The Court held that the policy's differentiation between industries based on the date of commencement of production was arbitrary and violated Article 14 of the Constitution, leading to the conclusion that the appellants were entitled to the benefits denied under the policy. The appeal was allowed, overturning the High Court's dismissal of the writ petition.