Exemption notifications are strictly construed: copper scrap used for manufacture did not qualify for purchase tax relief.

Copper scrap purchased from unregistered dealers did not qualify for exemption under S.R.O. No. 499/90 because the notification covered only goods taxable at the point of last purchase in the State and used in manufacture for sale. The court held that copper scrap, as described, was not within that class of goods, and the fact that the purchases were made from unregistered dealers did not alter the character of the goods. Applying strict construction to the exemption provision and finding the language plain, the court denied the assessee the benefit of exemption from purchase tax on the copper scrap used to manufacture copper sulphate.

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Issues: Whether copper scrap purchased from unregistered dealers and used in the manufacture of copper sulphate was entitled to exemption under S.R.O. No. 499/90 as goods taxable at the point of last purchase in the State.

Analysis: The notification granted exemption from tax payable under the Act on the turnover of goods taxable at the point of last purchase in the State and used in the manufacture of goods intended for sale. Copper scrap, as a description of goods, was not goods taxable at the point of last purchase in the State. The fact that the particular purchase was from unregistered dealers did not change the character of the goods or bring them within the class covered by the notification. The language of the notification was plain and unambiguous, so no external aid to construction was required. A strict construction of the exemption provision therefore led to the conclusion that the assessee could not claim the benefit.

Conclusion: The assessee was not entitled to exemption from purchase tax under S.R.O. No. 499/90 in respect of the copper scrap purchased for manufacture of copper sulphate.

Ratio Decidendi: An exemption notification applies only to goods answering the description specified in it, and a purchase does not qualify merely because the particular transaction may otherwise attract tax at the point of last purchase.

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