State of Kerala vs M/s Akay Flavours and Aromatics Ltd.

Court

Supreme Court of India

Date

2 February 2023

Case No.

Civil Appeal No(s). 7330 of 2009

Result

Partly allowed

Bench

S. Ravindra Bhat, Dipankar Datta

Citation

[2023] 2 S.C.R. 339 : 2023 INSC 716

Headnote

Circulars/Government orders/Notifications: Tax Exemption Notification SRO 1727/1993 – Exemption for period of five years from levy of sales tax on purchase of raw materials – Entitlement to exemption – Commencement of exemption, from the date of approval of the project by the Central Government or from the date of commencement of production – Assessing Authority commuted the period of five years from 16.12.1993 – Held: Letter dated 16.12.1993 on a plain reading appears to be a mere permission – Letter of permission contained standard conditions which described the commercial assent “letter of intent” – 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 – Thus, the term “approval” was issued in the letter dated 27.10.1994 – Date of approval was 27.10.1994 and that would be the reckonable date for grant of exemption under the Notification and the assessee could have availed exemption after 27.10.1994 – Assessee’s case that it commenced production only on 10.10.94 which is the reckonable date, is not persuasive.

The Judgment of the Court was delivered by S. RAVINDRA BHAT, J. 1. Leave granted in SLP(C) No. 36394/2011. 2. This Court while issuing notice and admitting the appeals had observed that an important question of law with respect to interpretation of SRO 1727/1993 which is an exemption notification issued by the State of Kerala, is involved. 3. The appeals have been preferred both by the State (Revenue) as well as by the Industrial unit. The short controversy is with respect to the entitlement to exemption. The Revenue contends that the exemption limit by five years in point of time was to c

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