STATE OF BIHAR & OS vs SUPRABHAT STEEL

The Supreme Court held that industrial units which commenced production before 1.4.93 and had investments not exceeding Rs. 15 Crores are entitled to sales tax exemption on raw material purchases for seven years under Clause 10.4(i)(b) of the Industrial Policy, 1993. The Court found the Bihar Government's notification dated 2nd April 1994, which restricted this benefit to units that had not availed prior incentives, to be invalid as it contradicted the 1993 Policy. Consequently, the Court upheld the High Court's decision to strike down the offending part of the notification.