Strict compliance with incentive notification conditions governs sales tax exemption; failure to surrender section 32 recognition defeats relief.

Sales tax exemption under the incentive notification was unavailable because the dealer did not meet the prescribed statutory conditions. The exemption applied only where the dealer was not holding recognition under section 32, or where such recognition was surrendered for cancellation within the stipulated time after the notification or commencement of production. As the dealer continued to hold the recognition and did not surrender it within time, the exemption claim failed and denial of the certificate was sustained.

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Issues: Whether the petitioner was entitled to sales tax exemption under the incentive scheme despite holding recognition under section 32 and not surrendering it within the prescribed time.

Analysis: The petitioner claimed exemption on the basis of the Government's incentive resolutions and its expansion of the industrial unit before the relevant cutoff date. The denial of exemption was upheld because the applicable notification under section 49(2) exempted sales by a specified manufacturer only if the dealer was not holding recognition under section 32, or if such recognition was surrendered for cancellation within the stipulated period after the notification or commencement of production. The petitioner admittedly continued to hold recognition and did not surrender it within time, so it did not satisfy the statutory conditions for exemption.

Conclusion: The petitioner was not entitled to the sales tax exemption certificate, and the challenge failed.

Final Conclusion: The exemption claim was rejected on the ground of non-fulfilment of the prescribed statutory conditions, and the denial of relief was sustained.

Ratio Decidendi: A dealer claiming exemption under the sales tax incentive notification must strictly satisfy the specified conditions, including surrender of recognition under section 32 within the prescribed period where required; failure to do so defeats entitlement to exemption.

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