Sales tax exemption for Harijan-run small-scale units required fresh reconsideration after verification of community status and eligibility conditions.

Sales tax exemption under SRO No. 969 of 1980 depended on whether the unit was a small-scale industrial unit set up by Harijans and whether the factual requirements for the notification were satisfied. The record was inconclusive because no exemption certificate from the Industries Department was produced, the community certificate was under challenge and referred for enquiry, and the ownership and management structure had not been clearly examined. The exemption claim therefore required fresh reconsideration by the assessing officer after the KIRTADS finding and any necessary clarification, with any adverse order to be preceded by communication of the basis and an opportunity of hearing.

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Issues: Whether the petitioner was entitled to sales tax exemption under Notification SRO No. 969 of 1980 as a small-scale industrial unit set up by Harijans, and whether the exemption claim had to be reconsidered on the basis of the community certificate and the finding to be issued by KIRTADS.

Analysis: The notification granted sales tax exemption to products manufactured by small-scale industrial units set up by Harijans, but the factual foundation for the claim was uncertain. The petitioner had not produced an exemption certificate from the Industries Department, the status of the community certificate had been challenged and referred for enquiry, and the record did not clearly establish how the notification applied to the petitioner or whether the ownership and management structure of the unit satisfied its conditions. The prior authorities had not properly examined the exemption claim in the light of the notification and the relevant factual requirements.

Conclusion: The exemption issue was not finally decided on merits and was required to be reconsidered afresh by the assessing officer after the KIRTADS decision and any necessary clarification, with no adverse order to be passed without communication of the basis and an opportunity of hearing.

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