Strict construction of tax exemptions bars courts from rewriting turnover conditions in concessional notifications.

A tax exemption notification granting concessional tax on handmade washing soap was upheld as a valid departure from the normal charging rule, and its condition limiting the concession to dealers with turnover not exceeding ten lakhs could not be struck down or altered in writ jurisdiction. The Court held that exemption notifications must be construed strictly within their terms, and the benefit cannot be enlarged by deleting the word "total" or otherwise rewriting the condition. The issuing authority retains the power to fix eligibility conditions, and judicial review does not permit substitution of the Court's view for that policy choice. The assessment order applying the notification was therefore sustained.

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Issues: Whether the condition in the exemption notification restricting the concessional rate of tax on handmade washing soap to dealers whose total turnover does not exceed rupees ten lakhs could be struck down or the word "total" in the notification could be deleted in writ jurisdiction.

Analysis: The exemption was issued under the statutory power conferred by section 8-A of the Karnataka Sales Tax Act, 1957, and operated as a departure from the normal rule of taxation under section 5 of the Act. The benefit of such a notification must be claimed strictly within its terms, and the Court cannot rewrite the condition, add to it, or remove words from it on the perceived object of the exemption. The authority issuing the notification is entitled to determine the conditions for availing the concession, and judicial review does not permit substitution of the Court's view for that policy choice.

Conclusion: The condition in the notification was valid and could not be struck down or read down as sought. The assessment order based on the notification, as interpreted by the earlier Division Bench ruling, was upheld.

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