Case Law Details
Gujarat Eco Textile Park Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
The brief facts of the case are that the appellant M/s Gujarat Eco Textile Park Limited floated integrated textile park under the scheme of integrated textile parks (SITP) formed by the Government of India (Ministry of Textiles). The appellant is Special Purpose Vehicle (SPV) a public private partnership. The appellant SPV was formed for acquiring land and setting up infrastructure for establishing textile parks wherein different member textile unit could operate. The Ministry of Textiles had engaged IL & FS as Project Management Consultant (PMC) for implementation of scheme. The said PMC reports to Ministry of Textiles. Ministry of Textiles supervises the operation of the parks through said PMC. The SPV also consists of representatives of Local Industries, Financial Institutions, state and Central Government representatives. The appellant company was incorporated on 07.10.2005 under the said module with representation of Ministry and representation of Banks on board of the company. IL & FS prepared detailed project report for the proposed park to be established by the appellant company. The said textile park project of the appellant company was sanctioned and approved by the Ministry in PAC Meeting held on 25.11.2005 and sanctioned letter was issued on 30.12.2005. The draft of share subscription agreement and lease deed was executed with M/s Radiance Spun Bond Private Limited became the first member of the project, thereafter numerous other members joined textile parks as member and entered into share subscription agreement and lease deed periodically. In terms of the scheme the member unit intending to establish other factor in the said park, executes share subscription agreement with SPV and became member of SPV. On becoming member, they were entitled to allotment of a parcel of a land and access to other common facilities at the park. Subsequent to the execution of the share subscription agreement the member units and SPV entered into lease deed for allotment of land situated in the park. The appellant received the following payments during the execution of the aforesaid agreements from the member units.
A. The member unit pays to the SPV price of the equity share purchased by him for becoming an equity shareholder of the SPV.
B. The member unit pays to the SPV rent for allotment of parcel of land.
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