Judgment :- The petitioners are oil millers, whose units are registered as small scale industrial units with -the Department of Industries and Commerce. The challenge is to the orders marked Ext. PI in each of these cases which while declaring the eligibility of the petitioners for exemption from payment of sales tax, limited the exemption upto 31-3-1991 only. The reason stated by the General Manager of the District Industries Centre for imposing this limitation is that oil mills producing coconut oil have ceased to be eligible for tax exemption from 1-4-1991 onwards. In O.P. No. 10909 of 1991, the period of exemption is from 4-4-1990 to 31-3-1991, in O.P. No. 11440 of 1991, it is from 28-1-1989 to 31-3-1991 and in O.P. No. 11628 of 1991, it is from 1-12-1989 to 31-3-1991. Petitioners claim that the exemption should extend for the entire period of five years mentioned in S.R.O. No. 968/80 dated 29-9-1980, which applies to the latter two cases and S.R.O. No. 499/90 dated 31-3-1990 which applies to the first of the cases. 2. by S.R.O.No.968/80 which was a notification issued under S.10 of the Kerala General Sales Tax Act, 1963 (the act), exemption in respect of the tax payable under the Act was granted on the turnover of the sale of goods produced and sold by new industrial units under the Small Scale Industries for a period of five years from the dale of commencement of sale of such goods by the said units, the amount of eligibility being limited to 90% of the cumulative gross fixed capital investment of the unit. What is a new industrial unit under the Small Scale Industries is defined in the Explanation. Petitioners in O.P. Nos. 11440 and 11628 of 1991 are claiming the benefit of this notification. 3. This notification was superseded by S.R.O. No. 499/90 on 31 st March, 1990 which came into force on 1st April, 1990. Thereunder there was liberalisation of the exemption. Petitioners in O.P. Nos. 11440 and 11628 of 1991 are claiming the benefit of this notification. 3. This notification was superseded by S.R.O. No. 499/90 on 31 st March, 1990 which came into force on 1st April, 1990. Thereunder there was liberalisation of the exemption. The notification granted exemption in respect of the tax payable under the Act by new industrial units under the Small Scale Industries as also by existing industrial units which effected diversification/expansion/modernisation, on the turnover 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 the units in the manufacture of goods intended for sale within the State or inter-State, subject to the conditions mentioned. This exemption was available for a period of five years from the date of commencement of commercial production, and in the case of existing units which effected diversification/ expansion/ modernisation for a period of three years from the completion of such diversification/expansion/modernisation as certified by the General Manager of the District Industries Centre. Provision was also made regarding existing units which had not exhausted their benefits under S.R.O. 1%). 968/80 for grant of the liberalised exemptions under this notification, subject to the condition that the aggregate exemption including that already availed of, shall not exceed the period and the monetary limits prescribed in this notification. New industrial units were defined to mean undertakings set up on-or after 1-4-1990, which had obtained a permanent registration from the Department of Industries and Commerce on or after that date. 4. To avail of the exemptions under S.R.O. Nos. 968/80 and 499/90, the dealer concerned had to produce before the assessing authority the proceedings of the General Manager of the District Industries Centre in the case of the first notification and of the committee constituted for the purpose in the case of the second notification, declaring the eligibility of the unit as also the extent of eligibility for exemption. 5. All the petitioners are registered as small scale industrial units with the Department of Industries and Commerce. They have also been found eligible for the benefits under the respective notifications. The grievance is about the limitation of the benefits upto 31st March, 1991 only. This limitation is based on a subsequent notification S.R.O. No. 440/91 issued on 30-3-1991 which came into force from 1st April, 1991. They have also been found eligible for the benefits under the respective notifications. The grievance is about the limitation of the benefits upto 31st March, 1991 only. This limitation is based on a subsequent notification S.R.O. No. 440/91 issued on 30-3-1991 which came into force from 1st April, 1991. The concerned General Manager of the District Industries Centre who has issued Ext. P1 in all these cases has stated that the exemption is limited upto 31 st March, 1991, as oil mills producing coconut oil are not eligible for any exemption after 1 st April, 1991. In otherwords, his view is that the notifications. R. O. No. 440/91 has the effect of depriving all units registered earlier of the benefit of the exemption after 1st April, 1991. The question is whether this view is correct. 6. I shall extract S.R.O. No. 440/91 as the language in which it is couched is rather obscure and not capable of easy understanding; in so far as existing oil mills arc concerned. "S.R.O. No. 440/91- In exercise of the powers conferred by S.10 of the Kerala General Sales Tax Act, 1963 (15 of 1963), the Government of Kerala having considered it necessary in the public interest so to do, hereby direct that the exemptions contained in notifications issued in (l) G.O. (MS) No. 74/80/TD dated 21st September 1980 published as S.R.O. No. 969/80 in Gazette No. 42 dated the 21st october 1980(2 ) in G.O.(P) No. 94/89 td dated 27th April 1989 published as S.R.O. No. 654/89 in the Kerala Gazette Extra-ordinary No. 393 dated the 27 th April 1989, and (3) in G.O.(P) No. 68/90/TD dated 31 st March 1990 published as S.R.O, No. 499/90 in the Kerala Gazette Extraordinary No. 351 dated the 31st March 1990 shall not apply to any oil mill in the State in which copra is crushed and coconut oil cake are produced except those oil mills which have produced the proceedings referred to in" the above notifications before the assessing authority. This notification shall come into force on the 1st day of April, 1991". The earlier part of the notification is clear that the benefit of the exemptions granted by the notifications mentioned ceased to be available to oil mills crushing copra and producing oil and oil cake on and after April, 1991. This notification shall come into force on the 1st day of April, 1991". The earlier part of the notification is clear that the benefit of the exemptions granted by the notifications mentioned ceased to be available to oil mills crushing copra and producing oil and oil cake on and after April, 1991. But oil mills which have been set up before March 31,1991 and which were existing as on that date cannot be deprived of the benefits which they were enjoying under S.R.O. Nos. 968/80, 654/89 or 499/90. The decision of the Supreme Court in Pournami Oil Mills v. State of Kerala (1987) 65 S.T.C.1 applies in full force to these units and the rights promised to them under the aforesaid notifications cannot be deprived of, or whittled down, by S.R.O. No.440/91. The petitioners are therefore entitled to enjoy the benefit of the exemption under S.R.O. Nos. 968/80 and 499/90 for the full period without limiting it for the period upto 31-3-1991. The orders Ext. PI in each of these cases in so far as they impose this limitation are therefore unsustainable in law. 7. The latter part of the notification, I believe, was really intended to achieve this object and to save the rights of the existing oil mills. But it is unhappily worded. The benefit of the notifications mentioned in it is preserved for those oil mills which have produced the proceedings referred to therein before the assessing authority. This carries no meaning and looks incongruous in as much as the availability of the benefit of the notifications is itself conditional on the assessee producing the proceedings mentioned before the assessing authority. The Government Pleader however sought to infuse some sense into this clause by reading it as requiring the production of the proceedings required, before the assessing authority, on or before 31-3-1991. In other words the submission was that if the proceedings had been produced before the assessing authority before that date, the benefit will accrue and continue for the full term, but not otherwise. 8. This plea cannot be accepted. In other words the submission was that if the proceedings had been produced before the assessing authority before that date, the benefit will accrue and continue for the full term, but not otherwise. 8. This plea cannot be accepted. Neither of the orders S.R.O. No. 968/90 or S.R.O. No. 499/90 set any time limit for making application for the eligibility certificate; nor was there any time limit within which the authority concerned who had to issue the certificate, namely the General Manager of the District Industries Centre in the one case, and the committee in the other case, had to deal with and dispose of such an application for eligibility certificate. The issue of the eligibility certificate is not within the control of the dealer and is dependent on the manner in which the concerned authorities choose to deal with it. To make the exemption conditional on production of such a certificate before 1-4-1991, when the issue of it depends on the speed, activism and efficiency of the concerned authorities and the machinery dealing with them is unreasonable. To deny exemption to units which had acted on the representations made by the Government in the notifications S.R.O. Nos. 968/80 and 499/90 and set up their units, merely because they could not procure the certificate and produce them before 1-4-1991 is arbitrary and plainly violative of Art.14 of the Constitution of India besides being hit (as already stated) by the decision in Pournami Oil Mills (1987) 65 S.T.C. 1. The view taken in the impugned orders that even though the units had been registered and had started functioning prior to 1-4-1991, exemption will not be available for the period after 1-4-1991 is incorrect. Ext. P1 in each of the cases to the extent it limits the exemption for the period upto 31-3-1991 only has therefore to be quashed. 9. This view of mine is substantiated by the letter which the Government had addressed to the Director of Industries and Commerce on 19-11-1993, which runs as follows: "With reference to your letter cited I am to inform you that oil mills which were registered prior to 1-4-1991 can be given sales tax exemption if they satisfy the condition of notification issued under SRC) 968/80 and 499/90. No amendment to notification issued under SRO 499/90 is necessary for mis purpose". No amendment to notification issued under SRO 499/90 is necessary for mis purpose". (This letter was produced before me at the hearing by the learned Government Pleader). The original petitions are accordingly allowed. The proceedings, Ext. P1 in each of these cases, in so far as they limit the exemption for the period upto 31-3-1991 are quashed. The first respondent is directed to amend the said certificates extending the period of exemption to avail for the full period allowed by the respective notifications S.R.O. Nos. 968/80 and 499/90.