Eligibility certificate conditions for base production and sales volumes apply to both tax waiver and deferral schemes.

The governing Government Order was read as a general safeguard for expansion cases, requiring base production volume and base sales volume to be stated in the eligibility certificate to prevent diversion of fiscal concessions to pre-existing capacity and to protect revenue. That requirement was not limited to sales tax deferral cases merely because the order arose in that context; the same control was held to apply to sales tax waiver cases as both schemes grant fiscal benefits. The eligibility certificate condition was therefore valid and within the scope of the Government Orders, and the challenge to it failed.

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Issues: Whether the condition requiring base production volume and base sales volume to be incorporated in the eligibility certificate applied only to sales tax deferral cases or also to sales tax waiver cases, and whether the impugned condition in the eligibility certificate was ultra vires the governing Government Orders.

Analysis: The governing Government Order was construed as laying down a general principle for all expansion cases. Its language and purpose showed that the requirement to specify base production and base sales volume was intended to prevent diversion of concession to pre-existing capacity and to protect revenue. The fact that the order arose in the context of a deferral case did not confine its operation to deferral alone. The scheme of waiver and deferral both conferred fiscal benefits, and the same safeguard was held applicable to both.

Conclusion: The condition in the eligibility certificate was valid and applicable to waiver cases as well as deferral cases. The challenge to the certificate failed.

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