State Of Orissa & Ors vs M/S. Tata Sponge Iron Ltd

The Supreme Court interpreted the exemption notification regarding sales tax under the Industrial Policy Resolution (IPR) of 1992, specifically paragraphs 7.4 and 7.5, which outline the conditions for exemption and deferment of sales tax for industrial units. The Court held that the respondent was entitled to deferment of sales tax on incremental sales post-expansion, clarifying that benefits apply only to sales exceeding the previous year's figures. The appeal was allowed, affirming the respondent's entitlement to the claimed benefits under the IPR.