In a key ruling affecting tax-exempt industrial units in Assam, the Gauhati High Court has dismissed a writ petition filed by M/s Aglow Packaging Pvt. Ltd., which had challenged the rejection of its sales tax exemption claims under the Assam Industrial Policy, 2008. Justice Sanjay Kumar Medhi, delivering the verdict on October 24, 2025, made it clear that statutory compliance particularly the filing of ‘C’ forms cannot be bypassed under the guise of policy benefits.
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Background
Aglow Packaging, based in North Guwahati, was granted eligibility for tax exemption under the Industrial and Investment Policy of Assam, 2008, and the Assam Industries (Tax Exemption) Scheme, 2009. The company’s production commenced in August 2009, and it was promised a seven-year exemption period till 2016, amounting to ₹6.87 crore in benefits.
However, when it applied for exemption for the 2010–11 period, the Superintendent of Taxes rejected the claim through an assessment order dated August 21, 2013. A subsequent revision plea was also turned down by the Additional Commissioner of Taxes in December 2014. Left with no choice, the company approached the High Court under Article 226 of the Constitution.
During the hearing, advocate Ms. N. Hawelia argued that the unit should still receive the exemption even though it could not furnish the mandatory ‘C’ forms for certain transactions. She cited judgments from the Bombay High Court and Supreme Court to claim that procedural lapses should not defeat a substantive industrial incentive.
The government side, represented by Shri B. Choudhury, standing counsel for the Finance and Taxation Department, opposed this view. He maintained that “submission of ‘C’ forms is the backbone of inter-state sale verification and a non-negotiable requirement under Section 8(4) of the Central Sales Tax Act.”
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Court’s Observations
Justice Medhi examined Sections 8(4) and 8(5) of the Central Sales Tax Act in detail, emphasizing that the benefits under Section 8(5) which allow state governments to reduce or waive taxes are strictly conditional on the prior fulfillment of Section 8(4).
“The argument that the unit could claim rebate without furnishing ‘C’ forms cannot be accepted in view of the clear requirement of the statute,” the bench observed. The judge also took note that the revisional authority had, in fact, given a partial exemption higher than what was legally allowable but chose not to disturb it since it did not prejudice the company.
Citing the Supreme Court’s ruling in Commissioner of Customs v. Dilip Kumar & Co. (2018), Justice Medhi reiterated that “tax statutes must be interpreted strictly in favor of the State,” especially where exemption clauses are involved.
The court also clarified that the company’s eligibility certificate only recognized its operational status it did not automatically grant unconditional exemption. Compliance with statutory forms remained a mandatory condition.
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Decision
Concluding that Aglow Packaging had failed to fulfill the basic statutory requirement for claiming rebate, the court held that no interference was warranted in the assessment or revisional orders.
“In view of the discussions above, no case for interference is made out. The writ petition stands dismissed,” the judge declared, ending a nearly decade-long litigation over the company’s tax claims.
No order on costs was passed.
Case: M/s Aglow Packaging Pvt. Ltd. vs. The State of Assam & Others
Court: Gauhati High Court (Assam, Nagaland, Mizoram & Arunachal Pradesh)
Case Number: WP(C)/6760/2016
Judge: Hon’ble Justice Sanjay Kumar Medhi
Petitioner: M/s Aglow Packaging Pvt. Ltd., North Guwahati, Assam
(An industrial unit seeking tax exemption under Industrial Policy of Assam, 2008)
Respondents:
- The State of Assam (Finance & Taxation Department)
- Commissioner of Taxes, Assam
- Superintendent of Taxes, Unit-B, Guwahati
- Additional Commissioner of Taxes, Guwahati
Date of Hearing: 16 October 2025
Date of Judgment: 24 October 2025
