Liberal construction of tax incentive schemes allowed condonation of procedural delay and consideration of the claim on merits.

Under a beneficial sales tax incentive scheme for newly established industries, procedural requirements were construed liberally where the original application had been filed in time but was returned for defects. The later delay was not treated as fatal because the defect-related refiling was supported by sufficient cause and the scheme was intended to grant a tax concession. The claim was therefore required to be considered on merits, in favour of the assessee.

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Issues: Whether the delay in filing the application for benefit under the Sales Tax Incentive Scheme for Industries, 1987 should be condoned and the application considered on merits.

Analysis: The application had originally been filed within time, but was returned for defects. In a beneficial incentive scheme framed to encourage newly established industries, procedural requirements were held to be capable of liberal construction. The delay in filing the later application was not treated as fatal, particularly when the first application was timely and the defects were only procedural. The principles of sufficient cause and liberal interpretation of concessionary tax provisions supported consideration of the claim on merits.

Conclusion: The delay was condoned and the application was required to be considered on merits, in favour of the assessee.

Ratio Decidendi: Where a timely application under a beneficial tax incentive scheme is returned for procedural defects, the delay in a subsequent filing may be condoned and the claim considered on merits if sufficient cause is shown and the scheme is intended to confer a tax concession.

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