2004 (5) TMI 556 - HC - VAT and Sales Tax

Summary

Issues:
Exemption from sales tax under specific notifications for a small-scale industrial unit.

Analysis:
The judgment delivered by the High Court of Kerala pertained to a small-scale industrial unit engaged in the manufacture of hollow bricks, doors, and windows with concrete. The appellant claimed exemption from sales tax as per notifications S.R.O. No. 1729/1993, modified by S.R.O. No. 1092/1999, further amended by S.R.O. No. 295/2000. The crucial clause for consideration required the industrial unit to own or acquire land for establishment, apply for financial support before January 1, 2000, and commence commercial production by December 31, 2001. The appellant acquired land on October 28, 2000, and applied for a loan on February 10, 2000, which was beyond the specified cut-off date. The court held that the appellant failed to meet the conditions outlined in the clause, leading to the denial of the exemption claim.

The court rejected the appellant's argument based on a lease deed dated October 28, 2000, claiming land acquisition on December 1, 1999. The lease deed involved the husband and wife, with the husband being the actual landowner, rendering the claim of prior land acquisition invalid. The application for financial support was also submitted post the cut-off date, reinforcing the non-compliance with the stipulated conditions. Consequently, the court upheld the single Judge's decision to dismiss the writ petition filed by the appellant, as the appellant did not fulfill the prerequisites for claiming the exemption. The writ appeal was consequently dismissed, affirming the denial of the exemption from sales tax to the appellant's small-scale industrial unit.