What is the interpretation of an exemption notification in regard to payment of sales tax? What are the rights of an industrial unit to sales tax incentives under the Orissa Industrial Policy Resolution, 1992? How should an exemption notification be construed?

Key Points: - The Supreme Court upheld the Orissa High Court's decision that the respondent was entitled to sales tax exemption benefits as per the Orissa Industrial Policy Resolution (IPR), 1992 (!) . - An exemption notification must be construed liberally (!) (!) . - The High Court correctly held that the respondent was entitled to the benefit of exemption until such time it was withdrawn by a subsequent notification (!) (!) . - Operational guidelines, being subordinate legislation, must be in consonance with the IPR and cannot impose conditions not present in the policy itself (!) (!) . - The IPR, 1992, and the Finance Department Notification (SRO No. 1091 of 1992) did not specify a time limit for the sales tax exemption, implying it remained operative until utilized or withdrawn (!) (!) . - The eligibility certificate issued to the respondent, which stipulated a time period, was declared ultra vires the IPR, 1992 (!) . - The appeal filed by the State of Orissa was dismissed (!) . - The respondent, a large industrial unit, sought exemption from sales tax on finished products and capital investment subsidy under IPR, 1992 [1000412270003]. - The exemption was limited to 75% of the additional capital investment in plant and machinery for Zone B (!) (!) . - The benefit of exemption was applicable to incremental sales arising from expansion, modernization, or diversification (!) .

What is the interpretation of an exemption notification in regard to payment of sales tax?

What are the rights of an industrial unit to sales tax incentives under the Orissa Industrial Policy Resolution, 1992?

How should an exemption notification be construed?