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2010 (1) TMI 562 - SC - VAT and Sales TaxWhether the company could have invoked the principle of "promissory estoppel" in support of its claim? Held that:- State challenging the judgment and order dated April 24, 2002 is dismisse. It would be not possible to accept the submissions of Mr. Parshad that in view of the financial condition of the company it may be permitted to retain the amount collected under the orders of this court. The amount was collected from the consumer to offset the tax liability. Such amount cannot be permitted to be retained by the company. The objective of the exemption is to grant incentive to encourage industrialization. It is to enable the industry to compete in the market. On the other hand, refund of tax is made only when it has been realized illegally or contrary to the provisions of law. Tax lawfully levied and realized cannot be refunded. In view of the settled position of the law, we decline to accept the suggestion made by Mr. Parshad. Direction is, therefore, issued that the amount deposited by the company in the designated account opened and operated pursuant to the order of this court dated November 18, 2002 together with accrued interest shall be released to the appellant-State, forthwith.
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