Tax Exemption to encourage Industrialization cannot be equated with Tax Refund

M/s. Ultratech Cement Limited Vs. State Of Gujarat And Ors. (Delhi High Court) Exemption from tax to encourage industrialization cannot be equated with refund of tax. They are two different legal and distinct concepts. An exemption is a concession allowed to a class or individual from general burden for valid and justifiable reason. The underlying intention of exemption is to incentivize production and economic activity. VAT is an indirect tax passed on to the consumer. If an industry is exempt from tax the ultimate beneficiary is the consumer. The industry is allowed to overcome its teething...