BADRINARAYAN Vs. STATE OF M P

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution of India.

(2.) THE material facts giving rise to this petition, briefly, are as follows : The petitioner carries on the business of blending tea leaves at Indore under the name, M/s. Quality Tea Industries. The petitioner applied for grant of eligibility certificate for claiming exemption from payment of sales tax in accordance with the provisions of the notification dated 23rd October, 1981 issued by the State Government, in exercise of the powers conferred on the State Government by Section 12 of the Madhya Pradesh General Sales Tax Act, 1958 (hereinafter referred to as "the Act" ). By that notification, exemption was granted from payment of sales tax to the class of dealers specified in the notification, subject to the conditions and restrictions set out in the notification. The petitioner contends that though the petitioner fulfilled all the necessary conditions for grant of eligibility certificate under the notification, he was not granted that certificate on the ground that the petitioner was not engaged in any manufacturing process and hence was not entitled to any exemption. Aggrieved by this refusal to issue the eligibility certificate, the petitioner has filed this petition.

(3.) HAVING heard the learned counsel for the parties, we have come to the conclusion that this petition deserves to be allowed. The short question for consideration in this case is whether the petitioner was entitled to the grant of eligibility certificate in accordance with the provisions of the notification dated 23rd October, 1981 issued by the State Government under Section 12 of the Act. The relevant provisions of that notification, which were in force at the material time, are as follows : F. No. A3-41-81 (35)-ST-V dated 23rd October, 1981.-In exercise of the powers conferred by Section 12 of the Madhya Pradesh General Sales Tax Act, 1958 (No. 2 of 1959), the State Government hereby exempts the class of dealers specified in column (1) of the Schedule below, who have set up industry in any of the districts of Madhya Pradesh specified in the annexure to this notification and have commenced production after 1st April, 1981, from payment of tax under the said Act for the period specified in column (2), subject to the restrictions and conditions specified in column (3) of the said Schedule :