Tax exemption notification for the relevant assessment year remained applicable despite later rescission

A tax exemption notification dated 6.3.1991 applied to iron and steel raw material used in manufacture within Rajasthan during assessment year 1994-95, because it remained in force for that year. Its later rescission on 27.3.1995 did not affect the earlier assessment year. The Tax Board's application of the notification was treated as a factual finding, and the challenge failed because no substantial question of law arose from that correct factual application.

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Issues: Whether the Tax Board was justified in allowing set-off at 2.5% on raw material purchased during the assessment year 1994-95 by applying the notification dated 6.3.1991, and thereby granting relief to the assessee.

Analysis: The assessment year in question was 1994-95. The operative notification dated 6.3.1991 exempted tax to the extent the rate exceeded 1.5% on iron and steel used as raw material in manufacture within the State, subject to the stated conditions. The record showed that the assessee had used the purchased raw material in manufacture within Rajasthan and the notification was in force for the relevant assessment year. The subsequent rescission dated 27.3.1995 did not affect the applicability of the earlier notification to the year under assessment. The Tax Board therefore applied the correct notification, and its finding was one of fact.

Conclusion: The Tax Board was justified in granting relief on the basis of the notification dated 6.3.1991, and the challenge to that finding failed.

Final Conclusion: The petition was dismissed as the impugned order involved no substantial question of law and the Revenue's challenge to the Tax Board's factual finding was rejected.

Ratio Decidendi: A notification governing the relevant assessment year remains applicable for that year despite later rescission, and a correct factual application of such notification does not give rise to a question of law.

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