Strict construction of incentive schemes bars extending tax deferment through restitution or actus curiae without scheme compliance.

An exemption incentive scheme was held to require strict construction, so eligibility could not be enlarged by equitable doctrines. The claimant had provisional registration and earlier clearances but did not commence commercial production within the prescribed extended period. The prior High Court injunction did not show any unjust benefit to the State or prejudice caused by the court's own act, so restitution and the maxim actus curiae neminem gravabit could not be used to rewrite the scheme or grant a further extension. The claimed deferment benefit was therefore unavailable because the scheme conditions were not clearly satisfied.

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Issues: Whether the respondent was entitled to exclusion of the period during which a High Court injunction prevented further clearances for the project, so as to extend the time limit for commencing commercial production and retain eligibility under the sales tax deferment scheme on the basis of restitution or the maxim actus curiae neminem gravabit.

Analysis: The Scheme was an exemption incentive scheme and had to be construed strictly. The respondent had obtained provisional registration and some clearances, but it had not commenced commercial production within the prescribed extended period. The injunction order passed in the earlier public interest proceedings was not shown to have conferred any undue advantage on the State, nor had the State received any unjust benefit or enrichment from that order. The principle of restitution applies where a party has gained an unjust benefit from an erroneous judicial order, and the maxim actus curiae operates to prevent prejudice caused by the Court's own act. Neither doctrine could be stretched to rewrite the terms of the incentive scheme or to grant a fresh extension where the respondent had failed to satisfy the scheme conditions.

Conclusion: The respondent was not entitled to the claimed extension or deferment benefit on the basis of restitution or actus curiae.

Ratio Decidendi: An exemption or incentive scheme must be strictly construed, and equitable doctrines of restitution or actus curiae cannot be used to confer tax incentive benefits unless the claimant clearly satisfies the scheme conditions and demonstrates unjust enrichment or prejudice attributable to the Court's order.

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