Vs. S. Sirpurkar, J. - (1.) The judgment of the High Court denying the exemption from payment of Sales Tax is under challenge in this appeal at the instance of the Appellant - Pondicherry State Co-operative Consumer Federation Ltd. (for short "the Assessee"). Such exemption was granted by the Sales Tax Appellate Tribunal at Pondicherry by allowing an appeal filed by the Assessee. Prior to that the Assessee was assessed by the Assessing Authority and on an appeal by the Assessee the taxable liability was brought down to Rs.14,26,729.86 by the Appellate Commissioner. An appeal was, thereafter, filed before the Tribunal which allowed the appeal holding that the Assessee was covered by the G.O.Ms.No.15/74 dated 25.6.1974 and was as such exempted from paying the Sales Tax.
(2.) The Assessee is a Small Scale Industry certified as such by Director of Industries, Government of Pondicherry by G.O. No.35/IND/88-89/A-5/A-9 dated 19.5.1989. The said certificate specifically provided that the Unit of the Assessee was exempted from payment of Sales Tax for five years vide G.O.Ms.No.15/74/FIN (CT) dated 25.6.1974. It is obvious that thereafter this tax holiday was extended from time to time. The Assessee is also registered as a Small Industrial Unit and is certified as such by the Director of Industries by his order dated 9.3.1989. The Assessee purchases Palmolive Oil in bulk and packs the oil in small packages for the purpose of selling in retail and this packing of Palmolive Oil is done in the small industrial unit of the Assessee.
(3.) The Government of Pondicherry has issued a G.O. which we have referred to earlier dated 25.6.1974 and vide that G.O., in exercise of powers conferred by sub-Section (3) of Section 19 of the Pondicherry General Sales Tax Act, 1967 a general exemption is provided from payment of Sales Tax on the turnover of the sales of goods "manufactured" by (i) Small Scale Industries which went into production on or after 6th November; and (ii) All industries other than small scale industries which went into production on or after 1st April, 1971, as certified by the Director of Industries, Pondicherry. There is no difficulty and it is an accepted position that the appellant-assessee is covered by this G.O.;