Strict construction of exemption notifications kept poha mills outside the "rice mills" exclusion, preserving eligibility for sales tax certificates.

Poha mills were held not to fall within the exclusion for "rice mills" in the sales tax exemption notifications. Applying strict construction to exemption provisions and their exclusions, the Court treated poha making as distinct from rice milling in common parlance and regulatory treatment, and declined to extend the exclusion by implication. The authorities' reliance on the Full Bench decision was rejected as it did not decide that poha mills were traditional industrial units. The petitioners were therefore entitled to eligibility certificates, subject to the other prescribed conditions and restrictions.

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Issues: Whether poha mills were covered by the expression "rice mills" in the exemption notifications and, therefore, entitled to eligibility certificates for sales tax exemption under the State and Central sales tax notifications.

Analysis: The notifications granted exemption to industrial units subject to specified conditions, and excluded only those units specifically named. Poha-making was treated in common parlance and in the State's own regulatory treatment as distinct from rice milling. The exclusion of "rice mills" could not be extended by implication to poha mills, since exemption provisions and their exclusions are to be construed strictly and ambiguity, if any, must be resolved in favour of the taxpayer. The Court also noted that poha mills had earlier been treated as eligible in similar circumstances, and that the Full Bench decision relied upon by the authorities did not decide that poha mills were traditional industrial units.

Conclusion: Poha mills were not covered by the exclusion for rice mills, and the petitioners were entitled to eligibility certificates on fulfilment of the other prescribed conditions and restrictions.

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