Exemption scheme interpretation limits a later 90-day switch-over clause to dealers changing schemes, not those claiming the earlier benefit

A later exemption clarification fixing a 90-day period for dealers shifting from the 1981 scheme to the 1986 scheme under the Madhya Pradesh General Sales Tax Act could not be applied to a dealer who continued to seek benefit only under the 1981 scheme. The limitation operated only in switch-over cases, and rejection of the claim on the basis of that clause was therefore an incorrect construction of the exemption notifications. The petitioner's eligibility had to be examined under the 1981 scheme on its own terms, and the matter was required to be reconsidered on the merits of that scheme.

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Issues: Whether the petitioner could be denied consideration under the 1981 exemption scheme on the ground of failure to exercise an option within 90 days under the 1989 clarification to the 1986 scheme.

Analysis: The exemption framework under Section 12 of the Madhya Pradesh General Sales Tax Act, 1958 comprised the 1981 notification, the 1986 notification, and the 1989 clarification. The earlier scheme remained available to industries that satisfied its conditions, and the later notification expressly preserved an option for dealers who had already opted under the 1981 scheme to switch over to the 1986 scheme within 90 days. The 90-day limitation in the 1989 clarification was confined to dealers changing over from the 1981 scheme to the 1986 scheme. The petitioner had consistently sought benefit under the 1981 scheme and had never elected to shift to the 1986 scheme. The rejection of the claim by treating the petitioner as bound by the 90-day switch-over requirement was therefore based on an incorrect construction of the notification.

Conclusion: The petitioner could not be denied consideration under the 1981 scheme on the basis of the 90-day clause meant for switch-over cases, and the impugned rejection was unsustainable.

Final Conclusion: The matter was required to be reconsidered by the State Level Committee under the 1981 notification, with the petitioner's eligibility examined on the merits of that scheme.

Ratio Decidendi: A time-limit inserted in a later exemption notification for dealers opting to change over from an earlier scheme applies only to such switch-over cases and cannot be used to a dealer who consistently seeks benefit under the earlier scheme itself.

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