Exemption and set-off notifications must be read by their express language; no unstated territorial restriction was applied.

An exemption and set-off notification under Bihar sales tax law was construed according to its express language. On the cattle-feed exemption issue, khalli could not be excluded from the exemption on the record available because there was no factual finding that it fell outside the amended description, so the denial of exemption could not be sustained. On the set-off issue, the notification allowed a registered manufacturer to adjust tax paid on raw materials used in goods sold within Bihar, and no territorial limit was read into the place where raw-material tax had been paid. The assessee accordingly succeeded on both points.

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Issues: (i) Whether khalli was excluded from the exemption for cattle feed by the retrospective amendment to the exemption notification under the Bihar Sales Tax Fifth Ordinance, 1977. (ii) Whether, under the set-off notification issued under the Bihar Sales Tax Third Ordinance, 1980, tax paid on purchase of raw materials outside Bihar could still be adjusted against tax payable on sale of finished products in Bihar.

Issue (i): Whether khalli was excluded from the exemption for cattle feed by the retrospective amendment to the exemption notification under the Bihar Sales Tax Fifth Ordinance, 1977.

Analysis: The exemption question turned on whether khalli fell outside the limited description of cattle feed introduced by the amended explanation. The record did not contain a factual finding that khalli was outside that description. In the absence of such a finding, and with no scope at that stage to remit the matter for fresh determination, the challenge to the exemption could not succeed.

Conclusion: The exclusion contention failed and the exemption remained available to the assessee on this issue.

Issue (ii): Whether, under the set-off notification issued under the Bihar Sales Tax Third Ordinance, 1980, tax paid on purchase of raw materials outside Bihar could still be adjusted against tax payable on sale of finished products in Bihar.

Analysis: The notification permitted a registered manufacturer to adjust the tax paid on purchase of raw materials used in manufacturing goods for sale within Bihar. Its language imposed a geographical requirement on the sale of finished goods, but not on the place where tax on raw materials had been paid. No restriction was found in the notification limiting set-off to tax paid only within Bihar.

Conclusion: The assessee was entitled to the set-off even where tax on raw materials had been paid outside Bihar.

Final Conclusion: The appeal failed in full, and the assessee succeeded on both substantive questions concerning exemption and set-off under the sales tax notifications.

Ratio Decidendi: An exemption or set-off notification must be applied according to its express language, and a territorial restriction cannot be read into the provision unless it is clearly stated; where a factual basis for denying exemption is absent, the denial cannot be sustained.

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