1999 (11) TMI 880

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....ereinafter referred to as "the Act") exempting with effect from 10th December, 1980 all producers who run industries from payment of duty during the period as specified in the Scheduled attached therewith. The writ petitions filed by the appellants were dismissed by the High Court vide the impugned order holding that only such producers who had set up the generating units after 10.12.1980 were entitled to the exemption granted vide aforesaid notification. 4. It is contended on behalf of the appellants that the notification was applicable to all producers who run industries by establishing their own generating stations for the purposes of consumption of electrical energy notwithstanding as to whether they had started generating the electr....

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....ersons or class of persons and for such purposes as the State Government may, by notification, specify; it is necessary or expedient so to do in public interest, it may, by notification and subject to such conditions, if any,as it may specify in the notification,-- (a) exempt from payment of duty in whole or in part- i) any distributor of electrical energy or producer in respect of the electrical energy sold or supplied to such industry for the purposes thereof; ii) where any producer or class of producers runs the industry, in respect of the electrical energy consumed by such producer or class of producers for the purpose of such industry; iii) any distributor of electrical energy or producer in....

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.... economic justification or inequitable burden or progressive approach of fiscal provisions intended to augment State revenue. But once exception or exemption becomes applicable no rule or principle requires it to be construed strictly. Truly speaking liberal and strict construction of an exemption provision are to be invoked at different stages of interpreting it. When the question is whether a subject falls in the notification or in the exemption clause then it being in nature of exception is to be construed strictly and against the subject but once ambiguity or doubt about applicability is lifted and the subject falls in the notification then full lay should be given to it and it calls for a wider and liberal construction. Therefore, the ....