This Court while issuing notice and admitting the appeals had observed that an important question of law with respect to interpretation of SRO 1727/1993 which is an exemption notification issued by the State of Kerala, is involved.
Industrial raw materials, Plant and machinery (including components), spare parts, tools and consumables, other than petroleum products falling under item 97 of the First Schedule to the Kerala General Sales Tax Act, in relation thereto to 1OO% exports oriented units for use in the manufacture of goods.
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 16.12.1993 to the assessees which enabled it to proceed further to import capital goods and start exporting the finished product.
He submitted that given that this document was issued in 1994 the assessee took some time to put up its plant after which it commenced production on 01.10.1995 and that the last date is determinative for the commencement of exemption.
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.”
Also Read: https://newslaw.in/case-type/civil/courts-jurisdiction-in-re-appraising-arbitrators-findings/
In this case, letter dated 16.12.1993 on a plain reading appears to be a mere permission.
Therefore, this Court is of the opinion that the term “approval” in the present case was issued in the letter dated 27.10.1994.
In a given case, the unit holder may be vigilant and set up his or its unit early whereas in another case, the concerned unit-holder may be laid back or drags its feet resulting in the unit not commencing production.
Also Read: https://newslaw.in/case-type/civil/contrary-directions-in-issuance-of-letter-of-intent/
The appeals are partly allowed in above terms.
Case Title: STATE OF KERALA Vs. M/S AKAY FLAVOURS AND AROMATICS LTD. (2023 INSC 716)
Case Number: C.A. No.-007330-007330 / 2009
