Exemption certificate delay may be excused when late issue is attributable to the department, not the assessee.

Exemption under a sales tax notification should not be rejected merely because supporting certificates were issued after the stipulated period when the assessee had produced them before assessment and the delay was caused by the issuing department. The commentary states that, in such circumstances, the assessing authority should entertain the certificates and examine the exemption claim on merits rather than refuse consideration on a rigid time-limit basis. It further indicates that an assessment and demand founded solely on non-entertainment of the certificates would be unsustainable, with reconsideration required in accordance with law.

---

---

Issues: Whether the delay in producing the certificates required under the exemption notification should be entertained and the petitioner's claim for exemption considered on merits.

Analysis: The petitioner was a registered dealer claiming benefit under the Government notification issued in exercise of power under section 8A(1)(b) of the Karnataka Sales Tax Act, 1957. The required certificates from the Department of Industries and Commerce were produced before assessment, though some were issued after the stipulated period. The delay was found to have been caused by the time taken by the department to issue the certificates and was not attributable to any negligence on the part of the petitioner. In these circumstances, the assessing authority ought to have entertained the certificates and considered the exemption claim instead of rejecting it for delay.

Conclusion: The delay ought to have been condoned and the exemption claim considered on merits in favour of the petitioner.

Final Conclusion: The assessment and demand founded on refusal to entertain the certificates were unsustainable and the matter was directed to be reconsidered in accordance with law.

Ratio Decidendi: Where the assessee produces the requisite certificates before assessment and the delay in obtaining them is attributable to the issuing department rather than the assessee, the assessing authority may not rigidly refuse to consider the exemption claim merely on the basis of the prescribed time limit.

---