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2009 (4) TMI 845 - HC - VAT and Sales TaxWhether the provisions of section 15(5)(e) of the Act is only by way of clarification and even as indicated in the budget speech of the Finance Minister and that it does not create an additional liability but only points to an existing liability only reveals half truth? Held that:- The principle of promissory estoppel having been indicated to be attracted to a situation of the present nature as what the statute provided for earlier is an option and that option after having been exercised the consequence are sought to be changed by subsequent variation of the law is unreasonable, same logic holds good in respect of any liability fastened for the period from April 1, 2005 to March 31, 2007. However, the position continues to be the same in respect of all dealers other than works contractors and in the case of works contractors from April 1, 2007 onwards the liability as indicated in section 15(5)(e) of the Act though is independently mentioned is to be read as part of composition as offered under section 15(1) of the Act and it has to be worked on such premise for persons who have opted for payment of tax by way of composition and who are dealers, on and after April 1, 2007 onwards. In this view of the matter, all reassessment orders for levy of additional burden on the premise of the liability under section 3(2) of the Act for the period prior to April 1, 2007 and also any penalties levied under section 72(2) of the Act and the consequential levy of interest and penalty including any prosecution launched covering the period only on the premise that the tax paid by the petitioners by way of composition falls short of the amount indicated in the reassessment order, stands quashed by issue of a writ of certiorari. In this view of the matter, the show-cause notices issued in the case of petitioners in W.P. No. 2416 of 2008 at annexure D stand quashed by issue of a writ of certiorari. The petitioners having confined their challenge to the assessment orders up to the period March 31, 2007 and with the declaration of law that the provision of section 15(5)(e) of the Act as it operates from April 1, 2007 is a valid provision, other consequences in law follows. Section 4(3)(d) of Act No. 6 of 2007 is declared unconstitutional in so far as it pertains to the deeming provision of making clause (e) of sub-section (5) of section 15 of the Act operative from April 1, 2006 being an unreasonable provision having deleterious consequences on the petitioners.
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