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2010 (8) TMI 844 - HC - VAT and Sales TaxWhether notification dated April 11, 2007 be quashed being ultra vires to the extent of exclusion of petrol and diesel from the purview of exemption granted under the said notification? Held that:- It cannot be said that petrol and diesel form homogeneous part of other class covered under the exemption notification. Though exemption was enjoyed earlier at the time when Madhya Pradesh Commercial Tax Act was in force, it is permissible to look into that circumstances but that would not invalidate exemption which has been withdrawn by State Government by the impugned notification. It is permissible to withdraw the exemption to any class of goods at any point of time. Scope of judicial review is extremely narrow in such cases. It is the prerogative of the State. We are not satisfied that by withdrawal of the said exemption any annihilation has been done to the spirit of article 14 of the Constitution of India in the facts of the instant case. Merely by the fact that composition has been availed of under section 11A of the Madhya Pradesh VAT Act by the petitioner, cannot come to the rescue of the petitioner to make the rate of one per cent applicable when exemption itself has been withdrawn and rate has been prescribed in notification issued under section 4A dated April 11, 2007. The said notification has to be given full effect to. The petitioner is liable to pay entry tax. Necessary concomitant is that the petitioner is liable to make payment of tax at 27 per cent as prescribed in the notification dated April 1, 2007. Merely by the fact that the petitioner has been granted the facility of composition in the matter of payment of tax under section 11A of the VAT Act cannot be a ground to give the benefit to the petitioner of concessional rate of one per cent for the reasons mentioned hereinabove. Appeal dismissed.
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