JUDGMENT

Sen, J.-M/s. Shree Durga Oil Mills, respondent herein, was assessed to tax by the Sales Tax Officer for the assessment years 1979-80, 1980-81 and 1981-82 for purchase of groundnut from unregistered dealers. There is no dispute that groundnut was purchase from time to time by the respondents and utilised for manufacturing oil. The assessment orders were challenged by a writ petition on the ground that in view of the Industrial Policy Resolution (I.P.R.) dated 18.7.1979 issued by the Industries Department of the Government of Orissa, sales tax was not payable by a new industry on the purchase of raw material for the period prescribed in the I.P.R.

2. It was contended on behalf of the writ petitioner that it had applied for a license setting up an industry at Betnoti in the district of Mayurbhanj and obtained a provisional registration certificate on 28.11.1979. A permanent registration certificate as a small scale industrial unit was granted by the Director of Industries, Orissa on 10.4.1980. The industrial unit also obtained a production certificate certifying that it had started production on 19.3.1980. The certificate of registration was renewed from time to time. Clause (8