Sales tax exemption conditions failed where land acquisition and financing application occurred after the cut-off date.

Sales tax exemption under the notification depended on two conditions: the industrial unit had to own or acquire land for the unit, and it had to apply for financial support from a regular financial institution before the 1 January 2000 cut-off. The recorded materials showed the lease deed was executed only on 28 October 2000 and the financial assistance application was made on 10 February 2000. The recital in the later lease deed about earlier oral delivery of possession was not accepted as sufficient proof of acquisition before the cut-off, so the statutory conditions were not satisfied and exemption was unavailable.

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Issues: Whether the appellant satisfied the conditions prescribed in the sales tax exemption notification so as to be entitled to exemption from payment of sales tax.

Analysis: The exemption under the notification was available only if the industrial unit had owned or acquired land for establishing the unit and had applied for financial support from a regular financial institution before the stipulated cut-off date of 1 January 2000. The materials showed that the lease deed was executed only on 28 October 2000 and the application for financial assistance was made on 10 February 2000. The recital in the later lease deed regarding earlier oral delivery of possession was not accepted as sufficient proof of acquisition before the cut-off date. The statutory conditions were therefore not met.

Conclusion: The appellant was not entitled to the sales tax exemption.

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