Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Orissa Sales Tax Act-s. 6-Sales Tax |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Orissa Sales Tax Act - s. 6 - Sales Tax - Exemption from - Provided under Industrial Policy Resolution (IPR) 1992 - In the IPR as well as in consequent Notification no period provided, limiting the exemption - Claim of exemption by Industry - Denied by Authorities - In Writ Petition allowed by High Court - On appeal, held: The industry was entitled to the exemption to the extent of 75% of the amount invested in Plant and Machinery - In view of the legal provisions and the Notification, no period of limitation for seeking exemption prescribed.Interpretation of Statutes - Taxing statutes - Exemption Notification - Interpretation of - Held: Such Notification must be liberally construed.Respondent was declared a large scale industry in terms of Industrial Policy Resolution (IPR), 1980. By IPR, 1989 benefits of exemption from payment of sales tax on finished products were granted to the industries classified under IPR, 1980. Before availing of benefits by the respondent, IPR, 1992 was announced whereby the existing industrial units could obtain exemption or deferment of sales tax on finished products and capital investment subsidy subject to the condition that it had undergone an expansion/modernization/ diversification in its unit. According to Para 7.4 of the IPR, period of the exemption benefit was provided for 5 years. However, in Para 7.5 no period was mentioned. The limitation thereunder was that only 75% of the additional capital investment in Zone B would be allowed. In furtherance of IPR, 1992, Orissa Sales Tax Act was amended. Consequently, Notification SRO No.1091 of 1992 dated 23.9.1992 was passed and therein also no period was specified. Respondent made expansion of its undertaking in the year 1997. It claimed exemption relying on Para 7.5 of lPR, 1992. The same was denied. Writ Petition challenging the denial was allowed by High Court. Hence the present appeal. Revenue interalia contended that the respondent was not entitled to the exemption as the same was only for a period of 5 years for new industries. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 946 |
Petitioner | State Of Orissa And Ors. |
Respondent | M/s. Tata Sponge Iron Ltd. |
SCR | [2007] 10 S.C.R. 29 |
Judgement Date | 2007-09-18 |
Case Number | 4342 |
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