Industrial exemption finality requires tax authorities to follow the Industries Department's binding determination on exemption entitlement.

An industrial policy that makes the Industries Department's determination final on exemption entitlement requires the taxing authority to act consistently with that decision. The text states that the prior departmental finding had already held the petitioner entitled to exemption on raw materials, yet the cancellation order ignored that binding determination and an earlier remand direction. On that basis, the order was quashed and the matter remitted for fresh consideration in accordance with the Industries Department's decision and the court's observations.

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Issues: Whether the order cancelling the exemption certificate and denying sales tax exemption on purchase of raw materials could stand when the Industries Department had already decided that the petitioner was entitled to exemption and the Industrial Policy made that decision final.

Analysis: The Industrial Policy, 1995 contemplated that if any doubt arose, the matter would be referred to the Industries Department and the decision of the Commissioner-cum-Secretary, Department of Industries would be final. The prior departmental decision had held that the petitioner was entitled to exemption. The impugned order was found to have been passed without considering that binding decision and without complying with the earlier direction of the Division Bench requiring reconsideration in that light. Since the statutory policy framework required the tax authority to act consistently with the departmental determination, the order could not be sustained.

Conclusion: The cancellation order was quashed and the matter was remitted to the Deputy Commissioner, Commercial Taxes to pass a fresh order in accordance with the Industries Department's decision and the Court's observations.

Final Conclusion: The petitioner obtained quashing of the impugned order and a direction for reconsideration, with interim protection against coercive action.

Ratio Decidendi: Where an industrial policy makes the Industries Department's decision final on entitlement to exemption, the taxing authority must give effect to that decision and cannot ignore it while deciding cancellation or denial of the exemption.

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