SHREE GANESH ROLLER MILLS Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner has established a small-scale industrial unit for manufacture of "besan" having the installed capacity of 1,800 metric tons at B-28, Industrial Estate, Madhupatna, Cuttack, which is evident from the permanent registration certificate issued by the General Manager, District Industries Centre, Cuttack, as per annexure 2. The petitioner is entitled to exemption from payment of tax on purchase of raw materials, spare parts, packing materials, etc. , and sale of its finished products, as per Finance Department notification dated February 13, 1987, which is evident from serial numbers 26-D (iii) and 30-FF of the list of tax-free goods, provided the petitioner's industry does not fall within the 31 categories of items mentioned in the said list. Serial number 2 of the said ineligibility is with regard to flour mill. As required under the guide-lines, the Director of Industries has also issued necessary eligibility certificate for purchase of raw materials, spare parts and packing materials on a finding that the unit has made investment in land, building, plant and machinery from April 1, 1986. As per the PMT, the unit has commenced commercial production from February 4, 1989, which is admitted in the eligibility certificate vide annexure 3. Similar eligibility certificate has also been issued by the District Industries Centre for sale of finished products vide, annexure 4.

(2.) SUBSEQUENTLY , Industrial Policy Resolution of 1989 was introduced, and exemption on sale of finished products, which was earlier for five years as per serial No. 30-FF, was enhanced to seven years, as per Finance Department Notification dated August 16, 1990. By notification dated April 28, 1992, 38 additional categories of industries were added to the 31 categories mentioned in the notification dated August 16, 1990 to be ineligible for exemption. Serial number 43 of such ineligible industries is "units manufacturing besan out of dal". In the footnote of the said notification, it has been indicated that the industrial unit which is set up and in receipt of the incentive under the notification dated August 16, 1990 will continue to the said incentive.

(3.) THE decision cited by the Commissioner is clearly distinguishable. Insertion of an entry like "besan out of dal" has been made by the State of Orissa in the Finance Department notification dated April 28, 1992. The simple point for consideration is whether the petitioner's industry, which manufactures besan out of dal can come within the meaning of "flour mill". If "besan" is included in the word "flour", then there was no need for inserting entry No. 43 by way of amendment in the aforesaid notification. This entry itself clarifies that that flour mill does not cover a mill producing besan out of dal. This fact has not been taken into consideration either by the Assistant Commissioner or the Commissioner. It is the well-settled principle of law that assistance of subsequent amendment or entry can be taken to interpret an earlier provision or entry. Therefore, insertion of entry No. 43 in the list of ineligible industries mentioning "units manufacturing besan out of dal" clearly indicates that flour mill does not include a mill producing besan out of dal. As such, the conclusion of the Assistant Commissioner as well as the Commissioner in annexures 10 and 11 is not tenable in law. We, therefore, hold that from the date of its commercial production, i. e. , from February 4, 1989, the petitioner is entitled to exemption for a period of seven years on the sale of its finished products and five years for purchase of raw materials, spare parts and packing materials in accordance with law.