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Issues: Whether, for grant of eligibility certificate under the notification issued under section 4AA of the West Bengal Sales Tax Act, 1954, the expression "investment of the dealer on plant and machinery excluding land and building" includes installation charges of the plant and machinery.
Analysis: The eligibility notification was capable of the construction that only the actual cost of plant and machinery was to be considered, while installation charges were not expressly included. The Court held that the State Government having not specifically stated that installation expenses were part of the investment, the dealer was entitled to the interpretation favourable to it. The Court also noticed that installation cost varies with circumstances such as distance, technical expertise, and other factors, so inclusion of such cost would produce anomalous results, granting tax holiday to one dealer and denying it to another on the same machinery. Further, the conditions of entitlement required vouchers and records for purchase of plant and machinery, but not for installation charges, supporting the view that the relevant investment referred to purchase price alone. In fiscal legislation, where two reasonable views are possible, the interpretation favourable to the assessee must be adopted.
Conclusion: Installation charges were not to be included in computing the investment on plant and machinery for eligibility under the notification, and the refusal to issue the eligibility certificate was unsustainable.
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