TMI Blog1992 (5) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... n holding that registration by the Industries Department was to take effect only from July 10, 1970 and not from the date of making of the application on April 2, 1970? 2.. The relevant facts for the present purpose may be set out as follows The assessee has set up a small-scale industry, which has commenced its production on April 4, 1969. On April 2, 1970, it filed an application before the Industries Department of the Government of Bihar for grant of a registration certificate, which was granted on July 10, 1970. The assessee claimed exemption of sales tax under the Act with effect from the date of filing of the application, i.e., April 2, 1970, in accordance with the notification of the State Government bearing No. STGL-E 1013/69-9924 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9), the Governor of Bihar is pleased to exempt from the levy of both "general sales tax" and "special sales tax", sales of finished products by the newly set up small-scale industries at the first stage of sale after production for a period of five years from the date the industry starts its production. Explanation.-(1) 'Small-scale industry' means an industrial unit with an investment up to Rs. 7.5 lacs on plant and machinery, excluding the value of land and building, and approved and registered by the Industries Department of the Government of Bihar. (2) 'Newly set up small-scale industrial units' include such units which have already been set up but have not yet completed a period of 5 years from the date of starting of production. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mit by which it is to be granted. Therefore, interpretation of the notification per se is of no avail for seeking answer to the question involved in this reference. Therefore, the issue has to be resolved keeping in view the principles of equity and fair play which are now being firmly recognised as embedded in article 14 of our Constitution. The doctrine of strict compliance frequently applied in tax jurisprudence has to subserve the requirement of fair play. 6.. A question similar to that with which we are faced, had fallen for consideration before the Supreme Court in the case of the Assessing Authority v. Patiala Biscuits Manufacturers Pvt. Ltd. reported in [1977] 39 STC 381, with reference to section 7 of the Punjab General Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estions: "Can it be said that the intention of the Legislature was to defeat the claim of relief to an assessee for no fault of his merely because the departmental authorities, for whatever reason, may take some time in actually issuing such a certificate? Can it then be said that the purchaser and the dealer who sells to such a purchaser, who have actually done all that was required of them by the statute to be done, should be made to suffer merely because of the procedural delays in the grant of such certificates? The answer to these questions, in my opinion, can be one and one only: The purchaser or the dealer dealing with him cannot, in the absence of anything to the contrary, either expressly or by necessary intendment, be made so to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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