Beneficial construction of sales tax incentive schemes required merit-based consideration despite procedural delay

Sales tax incentive schemes meant to promote industrial development must be construed beneficially so as to advance their object. An application for an eligibility certificate or deferment certificate could not be refused solely on procedural delay where the scheme and later policy indicated a more liberal approach to limitation. The application therefore had to be considered on merits, and rejection on procedural grounds alone could not be sustained.

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Issues: Whether the petitioner was entitled to have its application for eligibility certificate or deferment certificate under the sales tax incentive schemes considered on merits notwithstanding the objection as to investment level and the delay in filing the application.

Analysis: The incentive schemes were framed to encourage industrial development in the State and were intended to operate beneficially. The refusal to entertain the application solely on the ground of delay was not justified in the circumstances, particularly when the later scheme itself showed that the State contemplated a more liberal approach to limitation. The scheme, therefore, called for a construction that advanced its object rather than defeated it.

Conclusion: The application had to be considered on merits, and the refusal to examine it only on procedural grounds could not be sustained.

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