Tyre retreading units retained sales tax holiday benefit where the notification expressly exempted them from disqualification.

A sales tax holiday notification excluded servicing and repairing units from incentive eligibility but expressly carved out tyre retreading units. Denial of the benefit to a tyre retreading unit on the basis of a contrary reading was therefore treated as a misreading of the notification, because the text itself preserved eligibility for that class of units. The refusal to extend the exemption was described as unfair and arbitrary, and the notification was held inapplicable to the petitioner, resulting in extension of the tax benefit.

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Issues: Whether the petitioner, a tyre retreading unit, was entitled to sales tax holiday despite the later notification excluding certain industries, and whether the refusal of the benefit was justified under the applicable governmental orders.

Analysis: The relevant notification specifically carved out an exception for retreading units from the category of servicing and repairing units rendered ineligible for sales tax incentives. The refusal to extend the benefit to the petitioner was based on a misreading of the notification. Governmental action in denying the exemption, when the text of the notification itself excluded retreading from the disqualification, was found to be unfair and arbitrary.

Conclusion: The petitioner was entitled to the sales tax holiday, and the impugned notification was held inapplicable to the petitioner. The writ petition was allowed and a mandamus issued directing extension of the tax benefit.

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