Strict compliance for tax exemption renewal: late application beyond the prescribed period was rightly treated as time-barred.

Renewal of an exemption certificate under the Orissa Sales Tax Rules had to be sought at least one month before expiry. As "year" meant the financial year, the certificate ran until 31 March, making 28 February 1970 the last permissible date. An application filed on 2 March 1970 was therefore time-barred. The exemption procedure was held to require strict compliance, and the defect could not be cured by reliance on the General Clauses Act in the circumstances. The renewal request was validly rejected as out of time.

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Issues: Whether the application for renewal of the exemption certificate under rule 5-A(iii) of the Orissa Sales Tax Rules was filed within time.

Analysis: The renewal application had to be made not later than a month before the date on which the certificate was due to expire. "Year" under section 2(k) of the Orissa Sales Tax Act meant the financial year, so the certificate ran up to 31st March of the relevant year. On that basis, the last permissible date was 28th February 1970, and an application filed on 2nd March 1970 was beyond time. The rule granting exemption had to be strictly construed, and failure to comply with the prescribed procedure could not be cured by invoking the General Clauses Act in the circumstances.

Conclusion: The renewal application was time-barred and its rejection was valid.

Ratio Decidendi: A tax exemption provision and the procedure prescribed for obtaining or renewing exemption must be strictly complied with, and an application filed beyond the prescribed period is liable to be rejected as time-barred.

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