Accrued sales tax exemption right survives later amendment when production begins under the original notification.

An industrial unit set up in a scheduled area and commenced within the terms of a sales tax exemption notification was entitled to five years' exemption once production began. The later amendment did not expressly repeal the earlier notification, and no retrospective operation was shown. On that basis, the exemption was treated as an accrued right that could not be taken away by the subsequent modification, so the levy of sales tax failed.

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Issues: Whether the industrial unit was entitled to sales tax exemption for five years under the government notification issued under section 9 of the Andhra Pradesh General Sales Tax Act, 1957, and whether the subsequent amendment could take away that exemption.

Analysis: The State had issued the exemption notification for units set up in scheduled areas, granting five years' exemption from sales tax. The company had established the unit, made substantial investment, and commenced production within the notified framework. The later amendment did not expressly repeal the earlier exemption, nor was any retrospective operation established. The exemption, once attracted on commencement of production, was treated as an accrued right and could not be defeated by the subsequent modification.

Conclusion: The company was entitled to the sales tax exemption for five years, and the challenge to levy sales tax failed.

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