J.B. Koshy, J. 1. In all these original petitions the interpretation of Notification S.R.O. No, 499/90 is involved which gave exemption in respect of tax payable under the Kerala General Sales Tax Act, 1963 by new industrial units under the small-scale industries and existing industrial units which effects diversification/expansion/modernisation on the turnover of sale of goods manufactured and sold by such units and on the turnover of goods taxable at the point of last purchase in the State and used by such units in the manufacture of goods subject to certain conditions. The exemption will be given only for three years from the date of completion certified by the General Manager, District Industries Centres of such diversification/expan-sion/modernisation. It is specifically mentioned that the aggregate exemption mentioned above shall not exceed the amount equal to the value of the new plant and machinery owned by the unit which are used for diversification/ expansion/modernisation.
2. Petitioner is a small-scale industry. The only question is whether the goods vehicles purchased for the purpose of the industry alone can be considered as part of plant and machinery based on a Board of Revenue clarification. The General Manager decided by exhibits P7 and P9 that value of vehicle cannot be included for exemption as it is specifically, mentioned that it will be equal to the "full cost of plant and machinery only". In other words an interpretation was taken that, value of the vehicle cannot be included for getting exemption as it is not part of plant and machinery. Government order was clarified by Government Circular dated October 25, 1990 where Government clarified how value of the plant and machinery is to be calculated. It states as follows :
"(c) Plant and machinery :
(i) In calculating the value of plant and machinery the cost of plant and machinery as erected at site will be taken into account which will include the cost of productive equipment such as tools, jigs, dyes and moulds, transport charges, insurance premium, erection costs, etc., will also be taken into account.
(ii) The cost of second-hand machinery will not be considered while calculating the cost of plant and machinery.
(iii) The amount invested on new goods carriers if they are actually and exclusively utilised for transport of raw materials and marketing of finished products of the unit can be accounted for."
It is reiterated in paragraph VIII(d) that monetary limit will be equal to the full cost of plant and machinery and plant and machinery is considered in paragraph IV(c) as extracted above. Therefore, contention of the petitioner is that petitioner is entitled to the benefit of the S.R.O. in view of the circular issued by the Government clarifying the S.R.O. by the Government itself. It is not disputed that S.R.O. circular issued by the Government is binding on the Government and the respondents and the clarification issued by the Government will override the clarification issued by the Board of Revenue. This matter was considered specifically with respect to goods carrier in clause. 4(c)(iii) of the Government Circular dated October 25, 1990.
3. In the above circumstances, I set aside exhibits P7 and P9 in O.P. No. 10814 of 1995 and direct the General Manager to reconsider the matter taking into account the clarification issued by the Government in Circular dated October 25, 1990 and subsequent clarification made if any by the Government in this regard and untrammelled by the clarification to the contrary issued by any subordinate officers below the Government.
4. O.P. Nos. 5865 of 1999 and 4764 of 2000 are filed raising the demands in view of the denial of exemption. AH the demands pursuance to exhibits P7 and P9 shall be kept in abeyance till new orders are passed as directed, by the General Manager. In O.P. No. 4764 of 2000 it is also contended that in view of the circular the car was seized. The above car also may be released to the petitioner on execution of a bond that he will pay the demand if any after passing the order by the General Manager on the question of exemption and also undertaking that be will not alienate the vehicle and he will produce the same as and when needed depending upon the order passed by the General Manager. The General Manager should pass fresh order within three months from the date of production of a copy of this judgment with notice to the petitioner.
All the original petitions are disposed of accordingly.
Order on C.M.P. No. 7964 of 2000 in O.P. No. 4764 of 2000P dismissed.