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TMI Blog2023 (2) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... . HELD THAT:- It is evident from the overall reading of the document issued by the Department of Industrial Development, Central Government on 16-12-1993 to the assessee that it was a mere permission conditioned upon fulfilment of certain specified requirements. Therefore, it was described as a letter of intent. The actual approval in clear terms enabling the benefit of exemption was issued on 27-10-1994, when Green Card was issued by the Central Government. Therefore, this Court is of the opinion that the term approval in the present case was issued in the letter dated 27-10-1994. In these circumstances, this Court is of the opinion that the term approval has to relate to unambiguous approval by the Central Government which in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue) as well as by the Industrial unit. The short controversy is with respect to the entitlement to exemption. The Revenue contends that the exemption limit by five years in point of time was to commence from the date of approval by the Central Government, to the approval to the project. The assessees had on the other hand contended that the exemption would commence from the date of commencement of production. 4. The relevant notification, granting the exemption in question, reads as follows : SCHEDULE -VI Goods the sale of which to Industrial undertakings/manufacturers/ dealers or the purchase of goods by industrial undertakings/manufacturers is exempt under sub-clause (5) clause I. Sl. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect to the interpretation of the notification. The Tribunal had concluded that there was no logic in the stand of the revenue that the period of exemption from sales tax on purchase of raw materials should be commuted prior to the setting of the unit. The assessing authority had commuted the period of five years from 16-12-1993. The Revision to the High Court was time barred. The High Court refused to condone the delay. Consequently the Revenue is in appeals and the appeal arising out of SLP (C) No. 36394 of 2011 is filed by the assessee. The Division Bench had remitted the matter for fresh consideration, even though the single Judge had granted some measure of relief by reducing the penalty. 6. It is contended on behalf of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ached to the term approved by the central government which occurs in SRO 1727 of 1993. The relevant part of the exemption notification, which relieves the assessee from paying tax on raw material, plant and machinery including component parts, tools, etc. of Item 97 of the First Schedule of the Kerala General Sales Tax Act in relation to 100% EO used for manufacture of goods reads as follows : Exemption shall be for a period of five years on the date of approval of such units by the Central Government. 8. In this case, letter dated 16-12-1993 on a plain reading appears to be a mere permission. Apart from setting out the items in respect of which the EOU or the Unit could claim exemption, other conditions included, inter alia, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e granting approval, in all manner the assessee was made known of the requirement it has to fulfil. If in a given case the unit-holder chooses not to go ahead or start production, he should not be rewarded for such inaction. 14. In these circumstances, the assessee s contention that the date of commencement should be the date when the exemption also becomes determinable cannot be accepted. Another reason why such a contention is unfeasible is that it injects subjectivity with regard to assessment of proceedings itself. In a given case, the unit-holder may be vigilant and set up his or its unit early whereas in another case, the concerned unit-holder may be laid back or drags its feet resulting in the unit not commencing production. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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