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2023 (2) TMI 1214 - SUPREME COURTInterpretation of SRO 1727/1993 which is an exemption notification issued by the State of Kerala - 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. 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 the present case was given on 27-10-1994 - Therefore, the assessee could have availed exemption after 27-10-1994. 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 the latter case, though it might have secured approval, the delay in the commencement of production should not be rewarded with an exemption. The court holds that date of approval in this case was 27-10-1994 and that would be the reckonable date for grant of exemption under the Notification SRO 1727/1993. Appeal allowed in part.
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