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of <h1>Court grants writs, quashes tax exemption rejections, emphasizes documentation & procedural fairness</h1> The court allowed the writ applications, quashing the rejection of exemption applications for sales tax under the Orissa Sales Tax Act and the Central ... - Issues:- Application for exemption of sales tax under Orissa Sales Tax Act and Central Sales Tax Act- Rejection of exemption application due to delay and incomplete certificate from Director of Industries- Disagreement on grounds for rejection- Requirement of certificate from Director of Industries for exemption- Lack of guidelines for Director of Industries to issue certificates- Directions to Sales Tax Officer for reconsideration of applications- Difficulty faced by Sales Tax Officer in interpretation of notification languageAnalysis:The judgment deals with an application for exemption of sales tax under both the Orissa Sales Tax Act and the Central Sales Tax Act for the development of industries in the State. The petitioner, owning a medium scale industry, had applied for exemption but faced rejection due to delay in application submission and incomplete certificates from the Director of Industries. The main issues for refusal were the delay in filing the application and the non-receipt of proper certificates. The court held that mere delay should not be a ground for rejection, and the Sales Tax Officer should allow the applicant to explain the delay before rejecting the application.Regarding the requirement of a certificate from the Director of Industries, the petitioner argued that such certificates are issued by the Central Government for medium and large scale industries, leaving no scope for the State Director of Industries to provide one. However, the court emphasized the importance of the certificate as a precondition for exemption and suggested that the Director of Industries could issue certificates based on Central Government registration certificates to facilitate the process.The judgment highlighted the lack of guidelines for the Director of Industries to issue certificates, leading to confusion. The court directed the Sales Tax Officer to reconsider the applications, giving the petitioner an opportunity to rectify any deficiencies in the certificates. Additionally, the Sales Tax Officer faced challenges in interpreting the notification language, prompting a request for instructions from the Commissioner to accept Director of Industries certificates based on Central Government certificates for medium and large scale industries.In conclusion, the writ applications were allowed, and the orders rejecting the exemption applications were quashed. The Sales Tax Officer was directed to reevaluate the applications after providing the petitioner with an opportunity to address any identified defects. The judgment aimed to streamline the process of obtaining exemptions for industries under the Industrial Policy Resolution of 1989, emphasizing the importance of proper documentation and procedural fairness.
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