STATE OF TAMIL NADU vs INDIA CEMENTS LTD.

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. The Court clarified that the provisions under Section 17A of the Tamil Nadu General Sales Tax Act, 1959 and Section 9(2) of the Central Sales Tax Act, 1956 allow for such deferrals to promote industrialization in backward regions. The Court affirmed that the eligibility criteria set forth in the relevant government orders were met by the respondent, thus validating the High Court's ruling.