ASSISTANT COMMR.(CT) LTU vs AMARA RAJA BATTERIES LTD.

The Supreme Court interpreted GOMs No. 108 dated 20.05.1996 concerning industrial incentives in Andhra Pradesh, clarifying that tax deferral applies only to additional local sales exceeding previous levels post-expansion. The Court held that the new industrial policy supersedes earlier orders, specifically excluding GOMs No. 75 dated 14.03.1996, and established that the base turnover for tax benefits is defined as the best production achieved in the three years preceding expansion. The judgment emphasized the need for clarity in government policies to ensure fair application of incentives.