9911796707
TMI Blog1990 (2) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... y of India Limited (opposite party No. 1), its Branch Manager (opposite party No. 2), the Commissioner, Commercial Taxes (opposite party No. 3), the Commercial Tax Officer, II Circle, Bhubaneswar (opposite party No. 4), the Commercial Tax Officer, I Circle, Bhubaneswar (opposite party No. 5) and the General Manager, District Industries Centre, Bhubaneswar (opposite party No. 6) with the prayer to direct the opposite parties 1 and 2 to refund Rs. 18,000 collected from the petitioner towards sales tax for the transactions during the months of April, May and June, 1988 and to restrain the said opposite parties from collecting any sum towards sales tax on sale/ purchase of raw materials till 10th of August, 1988. 2.. The case of the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on sale/purchase of raw materials during the months of April, May and June, 1988. In these circumstances, the petitioner filed the writ application seeking the reliefs noticed earlier. 3.. The opposite parties Nos. 3 to 5 in their return took the stand, inter alia, that the period of five years during which the petitioner was entitled to enjoy exemption from sales tax was to commence from 5th June, 1982, when the provisional registration certificate No. 2944/DICP was issued to it by the District Industries Centre, Puri (annexures C-1 and C-2). It is the further case of the said opposite parties that on the basis of the provisional registration certificate the Orissa State Financial Corporation agreed to provide a term loan of Rs. 10.76 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder: --------------------------------------------------------------------------- Sl. Description of goods Conditions and excepDate of No. tions subject to which effect exemption has been allowed. --------------------------------------------------------------------------- 1 2 3 4 --------------------------------------------------------------------------- 26-A Purchase or sale of- (a) raw materials, that is to say, The exemption shall 1-8-80 goods which directly go into be allowed for a period the composition of the of five years from the finished products; date of certification of ---------------------------------------------------------------------------- 1 2 3 4 --------------------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s intended to be the period during which the facility of exemption from tax was to be enjoyed; was it from the date of issue of provisional certificate or from the date the industrial unit went into commercial production? The difficulty arises because the language used in item 26-A is not specific, it merely states that from the date of certification of the unit by the Director of Industries. It is, therefore, necessary to consider the intent and purpose of the provision. Since the matter relates to exemption from sales tax to industrial units in pursuance of the policy decision of the Government, it will be helpful to note how it has been put in the policy decision. Therein it is stated "new village, cottage and small-scale industrial unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at though the State Government promised on the one hand that an entrepreneur will enjoy exemption from sales tax for a period of five years, in reality the period will be a much shorter one. Such interpretation will go against the sense of fairness and propriety of the State Government and will affect its credibility in the industrial field. Therefore such an interpretation, in our view, is to be avoided. 5.. On the above analysis, we have no hesitation to hold that the petitioner is entitled to enjoy the exemption from sales tax on sale or purchase of raw materials for the period of five years from the date of commencement of commercial production, that is 10th of August, 1983, as stated in the certificate (annexure 1). 6.. The writ ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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