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2022 (1) TMI 103 - HC - VAT and Sales TaxReopening of assessment - initiation of proceedings under Section 12 (8) of the Orissa Sales Tax Act, 1947 - sales tax concession on purchase of raw materials and sale of finished product under IPR-92 and in terms of Entry-42 of the exemption list as per the Finance Department Notification dated 23rd September, 1992 - HELD THAT:- The reason given for the reopening of the assessment for the year 1998-99 also does not stand scrutiny. The Petitioner has been merely informed that it is the same reason as per 1997-98 when in fact it could not have been. The basis for the claim of exemption for 1998-99 was in terms of Entry 44-A of the F.D. Notification dated 26th July 1996, which in fact permitted 100% exemption from sales tax. The decision in Vadilal Chemicals Ltd. [2005 (8) TMI 121 - SUPREME COURT] is instructive in this regard. In similar circumstances in that case, the Supreme Court disapproved the approach of the sales tax authorities seeking to override the exemption granted by the Department of Industries and Commerce. It was held that the Deputy Commissioner of Commercial Taxes (DCCT) “certainly could not assume that the exemption was wrongly granted nor did he have the jurisdiction under Section 20 of the State Act to go behind the eligibility certificate and embark upon a fresh enquiry with regard to the appellant's eligibility for the grant of the benefits. As the eligibility certificates were issued by the Department of Industries and Commerce and could not be cancelled by the Sales Tax Authorities - Petition allowed.
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