Statutory sales tax exemption must follow the notification's own area definition; later administrative clarification could not reduce the benefit.

The statutory sales tax exemption notification under the Gujarat Sales Tax Act was controlling, and its own definition of the designated area governed eligibility: a new industry commissioned beyond 10 kilometres from Surat fell within the benefit. The unit was found to be located beyond that limit, and no unmet eligibility condition was shown. The exemption could not be reduced by treating Sachin as part of a growth centre or by relying on a later administrative clarification. The revisional reduction of the eligibility certificate from 50 per cent to 25 per cent was therefore unlawful, and the petitioners were entitled to retain the notified exemption benefit.

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Issues: Whether the petitioners were entitled to retain sales tax exemption at the rate granted under the statutory notification for a unit located beyond the prescribed distance from Surat, and whether the revisional reduction of the eligibility certificate was lawful.

Analysis: The exemption scheme was issued under Section 49(2) of the Gujarat Sales Tax Act, 1968 and operated as a statutory notification. The decisive factor under the notification was whether the new industry was commissioned in a designated area, and the notification itself defined the designated area as land beyond 10 kilometres from the city of Surat. The petitioners' unit was found to be situated beyond that limit, and the other conditions of eligibility were not shown to be unmet. Once the statutory definition applied, the benefit could not be curtailed on the premise that Sachin formed part of a growth centre or by relying on an administrative clarification issued later by the Government.

Conclusion: The reduction of the exemption from 50 per cent to 25 per cent was unlawful, and the petitioners were entitled to the tax exemption benefit under the notification.

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