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2010 (8) TMI 825 - HC - VAT and Sales TaxLegality of the notification dated September 5, 2005 issued by the Principal Secretary to the Government of Meghalaya, Excise, Registration, Taxation and Stamps Department (respondent No. 2), which has the effect of withdrawing/cancelling the exemption of sales tax payable for sale of goods, manufactured by the petitioners, in the course of inter-State trade or commerce and confining such exemption only to registered dealers or the Government questioned Held that:- The notification dated April 12, 2001 allowing the tax exemption in respect of sales of goods in the course of inter-State trade or commerce not necessarily to a registered dealer did not fall foul of section 8(5) of the Central Sales Tax Act, 1956 prior to its amendment, which came into force only with effect from May 11, 2002: the notification dated April 12, 2001 is, therefore, not contrary to law. No evidence is shown nor is such a plea made by the State-respondents that public interest would be prejudiced if they are required to carry out the promise. Neither is it the case of the State-respondents that the representation was made outside the authority or power of its officials to make. Under the circumstances, I have no alternative but to hold that the State-respondents are barred by the doctrine of promissory estoppel from issuing the impugned notification, which, ex facie, is bad in law. The petitioner has, therefore, made out a clear case for the application of the doctrine of promissory estoppel to the facts of this case warranting the interference of this court. Resultantly, this writ petition succeeds. The impugned notification dated September 5, 2005 (annexure G), the assessment order dated February 15, 2007 (annexure E) and the notice of demand dated February 20, 2007 (annexure F) emanating therefrom cannot stand and are hereby quashed. Let a writ of mandamus issue forbearing the State-respondents from recovering a sum of ₹ 98,085 from the petitioner in terms of the impugned demand notice.
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