LexASSISTANT COMMR. (CT) LTU AND ANR. versus AMARA RAJA BATTERIES LTD.
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[2009] 11 S.C.R. 953 ~ ASSISTANT COMMR. (CT) LTU AND ANR. A V. AMARA RAJA BATTERIES LTD. (Civil Appeal No. 4707 of 2009) JULY 27, 2009 B [S.B. SINHA AND CYRIAC JOSEPH, JJ.] _.., Sales Tax - Exemption notification - New industrial .. policy - GOMs No.108 dated 20-05-1996 issued in "modification" of all earlier orders - Interpretation of - Held: c Exemption notification must be construed having regard to the purpose and object it seeks to achieve - It should be. .... construed liberally - In reading an exemption notification, no condition should be read into it when there is none - If an entrepreneur is entitled to benefit thereof, the same should D + not be denied - On facts, GOMs No.108 dated 20-05-1996 ~ was totally independent and complete code by itself and it was not necessary at all to refer to the earlier GOMs for its construction or implementation - Although the word 'modification' may not be held to be expressly repealing the E earlier notifications, the State intended to depart from the conditions laid down in the earlier GOMs - Words and Phrases - "modification" - Meaning of - Andhra Pradesh "· General Sales Tax Act. 4 F In order to encourage industrialization in the State, the Government of Andhra Pradesh had been evolving various incentive schemes from time to time. In modification of all earlier orders, the Government of Andhra Pradesh came up with a new industrial policy G called 'Target 2000' by way of GOMs No.108 dated ,.. 20.05.1996, which was to take effect from 15.11.1995 to " 31.03.2000. In terms of the said GOMs, certain existing industrial units setting up expansion project became 953 H 954 SUPREME COURT REPORTS (2009] 11 S.C.R. A eligible for sales tax deferral I exemption on enhanced turnover above the "base turnover" which in turn was defined to be the best "production achieved" during three years preceding the year of expansion or the "maximum capacity expected" to be achieved by the B industr;, whichever is higher. In terms of the said GOMs No.108 dated 20.05.1996, the respondents claimed benefit of deferment on sales tax ,.. on production in their expanded units which were, " however, either rejected or restricted to a lesser amount - c by the assessing authority under the Andhra Pradesh General Sales Tax Act. Writ applications were filed questioning the orders of - assessment, without availing the remedies available to D the assessee under the Andhra Pradesh General Sales Tax Act. By reason of the impugned judgment, the High ... Court held that the term "base turnover" referred only to the quantum of production and not the turnover thereof. E In appeals to this Court, it was contended that the High Court committed a serious error insofar as it failed to take into consideration that GOMs No. 108 was to be read with other GOMs preceding thereto and that the High Court should not have entertained petitions directly ) F against the orders of assessment as the question as to • whether the entrepreneurs had fulfilled the conditions laid down in the said GOMs or not were required to be considered by the respective assessing authorities. Interpretation of GO Ms No.108 dated 20.05. 1996 thus G fell for consideration in the present appeals. Disposing of the appeals, the Court +- HELD: 1.1. The Government adopted the new H industrial policy Target-2000 in order to accelerate ASSISTANT COMMR. (CT) LTU AND ANR. v. AMARA 955 RAJA BATIERIES LTD. industrial development in the State. The respondents had A expanded their projects pursuant to or in furtherance of the said policy decision. The period for which the said policy was to remain operative was between 15.11.1995 and 31.03.2000. It was, therefore, valid for a fixed period. [Paras 17 and 19) [964-E; 964-G] B 1.2. As the period in question has a direct nexus with the scheme, it wo'uld not be correct to contend that the said policy decision should be read with earlier policy decisions. Reference to the earlier policy decision has C nothing to do with the new scheme introduced by the Government. They have been referred to only for the purpose of tracing the history and to lay emphasis on the fact that the Government of Andhra Pradesh had from time to time issued appropriate notifications with a view to implement its liberalized State Incentive Schemes as D also the industrial policy statement issued in the year 1992. Had the intention of the G
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