Priority industry sales tax exemption upheld under Industrial Policy Resolution, with departmental minutes quashed.

A priority industry under the Industrial Policy Resolution, 1996 was held entitled to sales tax exemption under the relevant policy and notification framework. The Court applied the reasoning from the connected matter, treated the petitioner's unit as falling within the protected category of priority industries, and found the departmental minutes and consequential revisional and demand action inconsistent with that entitlement. The impugned minutes of the Commissioner's meeting were quashed, and the exemption benefit was confirmed in favour of the petitioner.

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Issues: Whether the petitioner industrial unit was entitled to sales tax exemption as a priority industry under the Industrial Policy Resolution, 1996, and whether the impugned minutes and consequential revisional and demand proceedings denying that benefit were liable to be quashed.

Analysis: The petitioner's entitlement turned on the same legal question that had already been decided in the connected matter, namely whether a priority industry under the Industrial Policy Resolution, 1996 could be denied the sales tax exemption contemplated by the relevant exemption entry. The Court adopted the reasoning in the connected judgment, held that the petitioner's unit fell within the protected category of priority industries, and treated the impugned departmental action, including the minutes of the meeting relied upon by the authorities, as inconsistent with the entitlement flowing from the policy and notification framework.

Conclusion: The petitioner was held entitled to avail sales tax exemption in accordance with the Industrial Policy Resolution, 1996, and the impugned minutes of the Commissioner's meeting were quashed.

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