Entry tax exemption on diesel generating set upheld where the equipment supported production and the certificate omission was not decisive.

Entry tax exemption was available for a diesel generating set purchased with other machinery for a new industrial unit, because the notification covered production machinery and also treated DG sets as utilities directly related to production. The absence of a specific mention of the DG set in the Joint Director's certificate did not defeat the exemption where the equipment was otherwise within the notification and intended for use in the production process. A purely literal and technical reading of the procedural certificate requirement was rejected as inconsistent with the object of the exemption scheme. The revisional order denying the benefit was unsustainable.

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Issues: Whether the assessee was entitled to entry tax exemption on the diesel generating set purchased along with other machinery for its industrial unit, notwithstanding that the certificate issued by the Joint Director did not specifically mention the DG set.

Analysis: The exemption notification granted relief on the entry of production machinery and equipment directly involved in the production process by a new industrial unit. The notification also contemplated diesel generating sets as utilities directly related to production purposes. The omission to specifically mention the DG set in the certificate could not defeat the exemption where the equipment was otherwise covered by the notification and was purchased for use in the production process. A literal and technical reading of the procedural requirement was rejected as it would undermine the object of the exemption scheme.

Conclusion: The assessee was entitled to exemption from entry tax on the DG set, and the revisional order denying the benefit was unsustainable.

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