Strict construction of exemption notifications bars implied relief from turnover tax under a distinct charging provision.

An exemption notification reducing tax on specified man-made fibres and yarn to the extent it exceeded two per cent was held not to extend to turnover tax under section 13A of the Rajasthan Sales Tax Act, 1994. The court applied strict construction of exemption notifications and read the notification in the context of the statutory scheme: turnover tax was a separate levy on gross annual turnover, while the notification was confined to sale or purchase transactions of specified goods and contained no express reference to section 13A. No implied exemption could therefore be inferred, and relief against turnover tax was unavailable.

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Issues: Whether the exemption notification dated 17 September 2001, issued under section 15 of the Rajasthan Sales Tax Act, 1994 and granting exemption from tax on sale or purchase of specified man-made fibres and yarn to the extent the rate exceeded two per cent, also exempted turnover tax leviable under section 13A of the Rajasthan Sales Tax Act, 1994.

Analysis: The notification was construed on its plain language and in the light of the statutory scheme. Turnover tax under section 13A is levied on gross annual turnover after the prescribed threshold is crossed, whereas the exemption notification dealt with individual sale or purchase transactions of specified goods and was conditioned by a certificate relatable to such individual purchases. The notification did not refer to turnover tax or to section 13A, and no implied exemption could be read into it. The later notification reducing the rate of tax on specified goods to the extent above two per cent operated in a different field from the levy of turnover tax. The principle of strict construction of exemption notifications and the absence of any express reference to turnover tax meant that the exemption could not be extended by implication.

Conclusion: The notification dated 17 September 2001 did not exempt turnover tax under section 13A of the Rajasthan Sales Tax Act, 1994, and the assessee was not entitled to relief on that ground.

Ratio Decidendi: An exemption notification must be confined to its express language, and a tax levied on gross turnover under a distinct charging provision cannot be treated as exempt by implication merely because the notification grants relief in relation to sale or purchase tax on specified goods.

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