SALIM AND COMPANY Vs. STATE OF ORISSA

JUDGEMENT

(1.) The appellant is aggrieved by the judgment and order of a Division bench of the High Court of Orissa. The High Court answered in the affirmative and in favour of the Revenue the following question:

(2.) The assessee purchases pulses and produces dal there from, which it sells. The assessee enjoys exemption from tax on the purchase of pulses. The question is whether the assessee is entitled to the benefit of an exemption notification issued under the provisions of the Orissa Sales Tax Act, the relevant item of which reads thus: "s. No. Description of Conditions and exceptions subject to which ____________goods__________exemption has been allowed_______ (1) ________ (2) __________________ (3]_____________ having regard to the fact that, admittedly, no tax was paid under the said Act in respect of the pulses from which the dal was obtained can it be said that these pulses "have met tax" under the said Act.

(3.) In State of M. P. v. Indore Iron and Steel Mills (P) Ltd. this Court construed an exemption notification, one of the conditions wherein was "and subject to the further condition that the goods referred to in column 1 had suffered entry tax" (SCC p. 418, para 2) under the particular statue. It was held that the words of the notification were so clear that they left no doubt whatsoever and could not be subjected to any construction but one, namely, that only goods upon which entry tax under the particular statute had been paid were entitled to exemption there under. There had to be actual payment. The impact of the entry tax upon the goods for which the exemption was sought had to be felt; only then was the exemption available. The use of the word "suffered" made this plain.