Sales tax exemption for tea processing failed where tea was excluded as raw material and no authorisation certificate existed.

Tea was excluded from the definition of raw material under Rule 2(f) of the Assam Industries (Sales Tax Concession) Rules, 1986, so exemption could not be claimed for tea used in blending and packing. The statutory scheme also required a certificate of authorisation under Section 4 of the Assam Industries (Sales Tax Concession) Act, 1987, and none had been issued. Promissory estoppel could not override the express statutory exclusion, and blending and packing of tea was not treated as manufacturing for the exemption. The result was that sales tax exemption was denied.

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Issues: Whether the appellant was entitled to sales tax exemption under the Assam Industries (Sales Tax Concession) Act, 1987 and the Rules framed thereunder despite tea being excluded from the definition of raw material, absence of a certificate of authorisation, and the plea of promissory estoppel.

Analysis: Rule 2(f) of the Assam Industries (Sales Tax Concession) Rules, 1986 excluded tea from the definition of raw material, so no exemption could be claimed in respect of tea used for blending and packing. The statutory scheme also required a certificate of authorisation under Section 4 of the Assam Industries (Sales Tax Concession) Act, 1987, and no such certificate had been granted to the appellant. The Court further held that promissory estoppel could not operate against the express statutory exclusion, and that blending and packing of tea did not amount to manufacturing activity for the purpose of the exemption.

Conclusion: The appellant was not entitled to the sales tax exemption, and the challenge to the denial of exemption failed.

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