JUDGMENT : D.P. Mohapatra, J. - The question that arises for determination in this case relates to the date from which the petitioner is entitled to exemption from sales tax on purchase or sale of raw materials by it, whether it is the date of issue of the provisional certificate or the date of commencement of commercial production in its industrial unit ? The petitioner, Teleworks Private Limited, a company registered under the Companies Act, 1956, filed this application under Articles 226 and 227 of the Constitution against the Steel Authority of India Limited (opposite party No. 1), its Branch Manager (opposite party No. 2), the Commissioner, Commercial Taxes (opposite party No. 3), the Commercial Tax Officer, II Circle, Bhubaneswar (opposite party No. 4), the Commercial Tax Officer, I Circle, Bhubaneswar (opposite party No. 5) and the General Manager, District Industries Centre, Bhubaneswar (opposite party No. 6) with the prayer to direct the opposite parties 1 and 2 to refund Rs. 18,000 collected from the petitioner towards sales tax for the transactions during the months of April, May and June, 1988 and to restrain the said opposite parties from collecting any sum towards sales tax on sale/ purchase of raw materials till 10th of August, 1988. 2. The case of the petitioner, shorn of unnecessary details, may be stated thus : Being attracted by the incentives offered by the State Government in its Industrial Policy, 1980, the petitioner established a small-scale industrial unit in the year 1983. The unit was registered with the opposite party No. 6 in 1983 and commenced its commercial production with effect from 10th August, 1983, which is evident from the permanent registration certificate issued by the opposite party No. 4 on 27th January, 1986 (annexure 1). One of the benefits to which the petitioner is entitled under the Industrial Policy, 1980, is exemption from sales tax on purchase or sale of raw materials for a period of five years from the date of commencement of commercial production. The petitioner purchases its raw materials, that is, rods in coils from the Bhubaneswar depot of the opposite party No. 1. The petitioner purchases its raw materials, that is, rods in coils from the Bhubaneswar depot of the opposite party No. 1. When the petitioner requested the opposite party No. 1 not to collect any amount from it towards sales tax during months of April, May and June, 1988 since it was entitled to the facility of exemption from tax till 10th of August, 1988, the latter refused to accede to the request on the plea that the opposite party No. 6 had intimated the opposite party No. 5 that the period of five years was to commence from the date of issue of provisional certificate in favour of the petitioner and not from the date of commencement of commercial production. As a result a sum of Rs. 18,000 has been retained by opposite party No. 1 towards sales tax on sale/purchase of raw materials during the months of April, May and June, 1988. In these circumstances, the petitioner filed the writ application seeking the reliefs noticed earlier. 3. The opposite parties Nos. 3 to 5 in their return took the stand, inter alia, that the period of five years during which the petitioner was entitled to enjoy exemption from sales tax was to commence from 5th June, 1982, when the provisional registration certificate No. 2944/DICP was issued to it by the District Industries Centre, Puri (annexures C-1 and C-2). It is the further case of the said opposite parties that on the basis of the provisional registration certificate the Orissa State Financial Corporation agreed to provide a term loan of Rs. 10.76 lakhs to the petitioner as evident from its letter dated 23rd November, 1982 ; the petitioner took possession of the shed No. 33/9 at the Industrial Estate, Mancheswar on 17th December, 1982, from the Orissa Industrial Infrastructure Development Corporation, Bhubaneswar and thereafter sales tax certificate bearing registration No. BH-2296 was granted to the petitioner on 4th February, 1983 and by 4th February, 1983, the petitioner claimed to have produced for sale the materials as specified in column 4 of the certificate of registration as per annexure C-3. Then the General Manager, District Industries Centre, Bhubaneswar, granted to the petitioner the permanent certificate No. 01156 with effect from 31st December, 1983 (annexure C-4). Then the General Manager, District Industries Centre, Bhubaneswar, granted to the petitioner the permanent certificate No. 01156 with effect from 31st December, 1983 (annexure C-4). The essence of the plea taken by the opposite parties is that the period of five years during which the petitioner was entitled to exemption from sales tax is from 5th June, 1982 to 5th June, 1987. No counter-affidavit has been filed on behalf of opposite parties Nos. 1 and 2. 4. From the pleadings of the parties the question as formulated earlier arises for consideration. The answer to the question depends on construction of the phrase "five years from the date of certification of the unit by the Director of Industries, Orissa" mentioned in the second column in item 26-A in List A of the list of goods exempted from Orissa sales tax (Notification No. 20206-CTA-14/76-F dated 23rd April, 1976). For proper appreciation item 26-A is quoted hereunder : SI. No. Description of goods Conditions and exceptions subject to which exemption has been allowed. Date of effect 1 2 3 4 26-A Purchasc or sale of - (a) raw materials, that is to say, goods which directly go into the composition of the finished products ; The exemption shall be allowed for a period of five years from the date of certification ofthe unit by the Director of Industries, Orissa, irrespective of the change in the owner-ship, if any, provided that the dealer or his authorised agent furnishes a declaration in form 1A appended below. 1-8-80 (b) machinery and spare parts thereof actually required for starting and maintaining the unit; (c) packing materials required for packing the finished product in the same form as manufactured by the unit ; When sold to or purchased by a registered dealer who is certified by the Director of Industries as a village/cottage/small-scale industry starting production inside the State on or after 1st August, 1980: Provided that the finished products of such industrial unit are sold inside Orissa or in course of inter-State trade or export from Orissa. Item 26-A was introduced with effect from 1st August, 1980, obviously in pursuance of the Industrial Policy of 1980. Item 26-A was introduced with effect from 1st August, 1980, obviously in pursuance of the Industrial Policy of 1980. It is relevant to state here that in item 26 which came into force with effect from 20th May, 1977, the phrase used in the third column was "for a period of five years from the date from which the manufacturing unit has started production". Similarly under item 26-D(i) which was inserted by S.R.O. No. 83/87 dated 13th February, 1987, with effect from 1st April, 1986, the phrase used in the third column is "for a period of five years from the date of commercial production to be certified by the concerned General Manager, District Industries Centre.....". The point for consideration is what was intended to be the period during which the facility of exemption from tax was to be enjoyed ; was it from the date of issue of provisional certificate or from the date the industrial unit went into commercial production ? The difficulty arises because the language used in item 26-A is not specific, it merely states that from the date of certification of the unit by the Director of Industries. It is, therefore, necessary to consider the intent and purpose of the provision. Since the matter relates to exemption from sales tax to industrial units in pursuance of the policy decision of the Government, it will be helpful to note how it has been put in the policy decision. Therein it is stated "new village, cottage and small-scale industrial units certified by the State Government shall be exempted from sales tax for five years on purchase of machinery spare parts, raw materials and packing materials". In the Industrial Policy of 1986, it is clearly stated that all new village, cottage and small-scale industries will be exempted from sales tax on purchase of spare parts of machinery, raw materials and packing materials for a period of five years from the date of their commercial production. The exemption from sales tax being in the nature of an incentive offered by the State Government it is intended to be real and substantial. The need for purchase of raw material arises when the industrial unit is ready to go into commercial production. No entrepreneur will unnecessarily invest in purchasing raw material before his industry is ready to go into production. The need for purchase of raw material arises when the industrial unit is ready to go into commercial production. No entrepreneur will unnecessarily invest in purchasing raw material before his industry is ready to go into production. It is common knowledge that a provisional certificate is granted to enable the entrepreneur to approach banks and other financial institutions for sanction of loan to apply for lease of land and to take other preliminary steps for setting up the industry. Therefore, on a fair reading and giving a harmonious construction which is in accord with intent and purpose of the provision, the phrase "for a period of five years from the date of certification of the unit" in item 26-A means five years from the date of certification of the unit having commenced commercial production. If the construction sought to be given by the opposite parties is accepted, it will mean that though the State Government promised on the one hand that an entrepreneur will enjoy exemption from sales tax for a period of five years, in reality the period will be a much shorter one. Such interpretation will go against the sense of fairness and propriety of the State Government and will affect its credibility in the industrial field. Therefore such an interpretation, in our view, is to be avoided. 5. On the above analysis, we have no hesitation to hold that the petitioner is entitled to enjoy the exemption from sales tax on sale or purchase of raw materials for the period of five years from the date of commencement of commercial production, that is 10th of August, 1983, as stated in the certificate (annexure 1). 6. The writ application is, therefore, allowed and the opposite parties Nos. 1 and 2 are directed to refund the sum of Rs. 18,000 retained from the petitioner's dues towards sales tax for the months of April, May and June, 1988 and other sums, if any, retained by them for the period mentioned above within a month from today. There will be no order for costs of this proceeding. A. Pasayat, J. 7. I agree. Final Result : Allowed