1986 (11) TMI 45 - SUPREME COURT

Whether the appellants had acquired a vested right of exemption from payment of sales tax under the Gujarat Sales Tax Act, 1969 for a period of 5 years from the date of commissioning of their oil mill in respect of purchases and sales relating to the business of their oil mill?

Whether in any event the appellants are entitled to claim tax exemption for a period of 5 years under cover of the doctrine of Promissory Estoppel?

Held that:- The facts in the present case do not go to establish that the appellants had put up the new industry in question subsequent to and in pursuance of the promise held out by Notification dated 29-4-1970 granting exemption. The concession offered by the Government under the first Notification dated 29-4-1970 did not prescribe any period or time limit, and hence the appellants cannot claim anything more than the benefit of the Notification for such period the exemption was in force. Once the Government decided, in exercise of the powers vested in it, to revoke the original Notification, the benefit of exemption from sales tax enjoyed by the appellants came to an automatic end. The period of five years mentioned in the second Notification will have no reference to the appellants' oil mill commissioned much' earlier because the Notification had only prospective effect. We have, therefore, to affirm the view of the High Court that the appellants will be entitled to the benefit of tax exemption only for the limited period during which the concession was offered by the Government. Appeal dismissed.