Concessional tax benefit survives exemption scheme where saving clause preserves statutory rate relief and excess payment may qualify for set-off.

An exemption under the Rajasthan Sales Tax Incentive Scheme, 1987 did not extinguish the statutory right to concessional taxation under Sections 5C and 5CC of the Rajasthan Sales Tax Act, 1954, because the Scheme's Explanation preserved that benefit despite the bar on deduction, drawback, set-off and refund for exempt units. Excess tax paid beyond the concessional liability could be adjusted by set-off, but only if the payment was actually in excess of what Section 5C permitted. The entitlement to the concessional rate was affirmed, while the set-off claim required a factual finding on the nature and quantum of the payment.

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Issues: Whether an industrial unit, though entitled to exemption under the Rajasthan Sales Tax Incentive Scheme, 1987, could still claim the benefit of concessional taxation under Sections 5C and 5CC of the Rajasthan Sales Tax Act, 1954, and whether set-off was available for tax paid in excess of the concessional liability.

Analysis: Clause 4(c) of the 1987 Scheme bars deduction, drawback, set-off, partial exemption and refund in respect of purchases made by an exempt unit, but the Explanation expressly preserves the benefit of concessional rates under Sections 5C and 5CC of the Rajasthan Sales Tax Act, 1954. On that construction, exemption under the Scheme does not extinguish the statutory right to pay tax at the concessional rate where the conditions of those sections are satisfied. If tax was in fact paid beyond the liability fixed by Section 5C because the assessee wrongly treated itself as disentitled to concessional treatment, the excess could be adjusted by way of set-off. The difficulty in the case was factual: the orders below did not disclose whether the amount claimed represented payment over and above the concessional liability or merely tax properly payable under Section 5C.

Conclusion: The assessee's entitlement to avail the concessional-rate benefit under Sections 5C and 5CC, notwithstanding the incentive scheme, was upheld, but the actual entitlement to set-off depended on a factual finding as to whether the amount was paid in excess of the concessional liability.

Final Conclusion: The legal interpretation of the scheme and the statutory concessional provisions was affirmed, but the matter required factual inquiry on the quantum and nature of payment, so the issue of set-off was not finally concluded on the existing record.

Ratio Decidendi: An exemption scheme may bar ordinary set-off claims, yet an express saving clause preserving concessional-rate provisions allows an assessee to claim the statutory benefit, and set-off of excess payment is available only if the tax was actually paid beyond the concessional liability.

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