2004 (11) TMI 319 - SC - VAT and Sales Tax

Whether the conditions prescribed by the authorities for grant of exemption are mandatory for availing the same?

Whether the High Court can in exercise of writ jurisdiction direct grant of exemption contrary to the terms thereof and overlooking the statutory conditions prescribed for such grant in the absence of any challenge to the validity of such conditions?

Held that:- Appeal allowed. The failure to comply with the requirements renders the writ petition filed by the respondent liable to be dismissed. While mandatory rule must be strictly observed, substantial compliance might suffice in the case of a directory rule. Thus the High Court has erred in allowing the writ petition filed by the respondent herein and directing the grant of exemption in favour of the respondent. We, therefore, have no hesitation in setting aside the judgment and order passed by the High Court.