1986 (3) TMI 77 - SUPREME COURT

Writ in the nature of mandamus to the State Government of Kerala to give effect to the Notification issued by the State Government bearing G. 0. Ms. No. 127/7311D, dated October 12, 1973, under section 10 of the Kerala General Sales Tax Act, 1963 by which the State Government had restrospectively granted an exemption in respect of the tax payable under section 5 of the said Act by the cashew manufacturers in that State on the purchase turnover of cashew nuts imported from outside India through the Cashew Corporation of India for the period between September 1, 1970, and September 30, 1973

Held that:- In the instant case, on the date on which the notification was issued, the Kerala Government had no such power under section 10 of the Act as it stood then to issue a notification granting exemption with retrospective effect.

Hence the impugned notification which granted exemption on October 12, 1973, for the earlier period between September 1, 1970, and September 30, 1973, was ineffective. It was also not shown that relying upon the notification during the period between October 12, 1973 and November 9, 1973, the appellants had done any act which attracted the rule of estoppel. The authority which can issue a notification may cancel it also. Section 10(3) of the Act confers such power of cancellation expressly. The State Government did so and cancelled the earlier notification as there was a public hue and cry that the State Government had shown undue favour to the Kerala cashew nut factory owners at a time when the State was passing through grave and difficult financial position. Moreover the transactions in question related to the past period.

Hence the appellants are not entitled to any relief either on the principle of promissory estoppel or on the basis of the earlier notification issued under section 10 of the Act. Appeal dismissed.