State Of Tamil Nadu & Anr vs India Cements Ltd. & Anr

The Supreme Court upheld the High Court's decision granting M/s India Cements Ltd. the benefit of deferral of sales tax under the interest-free sales tax deferral scheme as per G.O.Ms.No.119 dated 13th April, 1994, and clarified that the provisions of Section 17A of the Tamil Nadu General Sales Tax Act, 1959 and Section 9(2) of the Central Sales Tax Act, 1956 support the entitlement of industries in backward areas to such benefits. The Court emphasized that the scheme aims to promote industrialization and correct regional imbalances, thus affirming the legality of the benefits provided to the respondent. The appeal was dismissed, confirming the High Court's ruling.