2023 (2) TMI 1214

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....O 1727/1993 which is an exemption notification issued by the State of Kerala, is involved. 3. The appeals have been preferred both by the State (Revenue) as well as by the Industrial unit. The short controversy is with respect to the entitlement to exemption. The Revenue contends that the exemption limit by five years in point of time was to commence from the date of approval by the Central Government, to the approval to the project. The assessees had on the other hand contended that the exemption would commence from the date of commencement of production. 4. The relevant notification, granting the exemption in question, reads as follows : "SCHEDULE -VI Goods the sale of which to Industrial undertakings/manufacturers/ deal....

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....n purchase of raw materials should be commuted prior to the setting of the unit. The assessing authority had commuted the period of five years from 16-12-1993. The Revision to the High Court was time barred. The High Court refused to condone the delay. Consequently the Revenue is in appeals and the appeal arising out of SLP (C) No. 36394 of 2011 is filed by the assessee. The Division Bench had remitted the matter for fresh consideration, even though the single Judge had granted some measure of relief by reducing the penalty. 6. It is contended on behalf of the Revenue by relying on the terms of the notification that in the present case, the Central Government had in fact, granted its approval when the permission letter was issued on 16-1....

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....ng tax on raw material, plant and machinery including component parts, tools, etc. of Item 97 of the First Schedule of the Kerala General Sales Tax Act in relation to 100% EO used for manufacture of goods reads as follows : "Exemption shall be for a period of five years on the date of approval of such units by the Central Government." 8. In this case, letter dated 16-12-1993 on a plain reading appears to be a mere permission. Apart from setting out the items in respect of which the EOU or the Unit could claim exemption, other conditions included, inter alia, that the entire production had to be exported to General Currency Area/Hard Currency Area countries and that the value addition would be a minimum of 67 per cent and that th....