Tax exemption cannot be granted if the activity does not meet the statutory definition of manufacture, as established in relevant tax laws, specifically that purification does not transform water into a distinct commercial commodity.

JUDGMENT :

Heard Mr. K. N. Choudhury, the learned senior counsel assisted by Mr. D. Saraf, the learned counsel for the petitioner. Also heard Mr. A. Kalita, the learned counsel appearing on behalf of the Industries Department of the Government of Assam and Mr. B. Choudhury, the learned counsel appearing on behalf of the Finance and Taxation Department of the Government of Assam.

2. Both the writ petitions are taken up together taking into account the similarity of the issues involved. At the outset, it is relevant to take note of WP(C) No.6977/2015 which relates to the assessment year 2005-2006 and WP(C) No.6978/2015 which relates to the assessment years 2006-07; 2007-08; 2008-09; 2009-2010 and 2010-11.

3. The facts as could be discerned from the writ petitions are that the petitioner is a registered dealer under the provisions of the Assam Value Added Tax Act, 2003 (for short, ‘the Act of 2003’) and the CENTRAL SALES TAX ACT , 1956 (for short, ‘the Act of 1956’). The Government of Assam had formulated an Industrial Policy in the year 1997 with the goal to provide an effective thrust to expeditious promotion and growth of all industries with a view to creating a strong industrial base and employment opportunities in various directions. In the said Industrial Policy of 1997, the State of Assam had formulated a package of incentives for promotion and setting up of industrial units and revitalization of sick industrial units in the State. The period of said new package of incentives was to be with effect from 01.04.1997 and to remain in operation for a period of 5 years or till such time as the Government may think fit and proper. The Government also reserved its right to make any amendment to the said Scheme. In terms with Clause 4.2 of the said Industrial Policy Resolution, 1997, the effective date was 01.04.1997 and from that date the 1991 Incentive Scheme under the Industrial Policy, 1991 ceased to be operative unless otherwise provided. Clause 4.3 (ii) stipulated what is an Eligible Unit. In terms with the said definition, an Eligible Unit means only New Units set up on or after 01.04.1997 and existing units undergoing expansion, modernization, diversification at the same place in the State of Assam on or after 01.04.1997 by making additional investment on fixed capital by not less than 25%. The said Industrial Policy Resolutions further mandated the terms and conditions under which an Eligible Unit would be entitled to the incentives. Clause 4.4 stipulates the Eligibility. Clause 4.5 relates to Eligibility Certificate. This certificate of eligibility is a certificate which is required to be issued by the Udyog Sahayak of the Directorate of Industries/District Industries Centre for SSI sector and the Assam Industrial Development Corporation Ltd. (AIDC) for the medium and large sector industries. The said certificate is to be issued after ensuring that all the criteria for eligibility have been fulfilled to the full satisfaction of the concerned Udyog Sahayak. In terms with sub-clause (ii) of Clause 4.5, no right or claim for any incentive under the Scheme shall be deemed to have been conferred by the Scheme