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2012 (12) TMI 951 - HC - VAT and Sales TaxWhether activity of crushing of boulders into smaller sizes of stones amounts to "manufacturing" and, if not, whether the sales tax exemption already granted could be withdrawn? Whether it is open to the Department to cancel the eligibility certificate already granted even if the same was given on erroneous understanding that conversion of stones into chips amounts to "manufacturing"? Held that:- In the present case, the question being covered by the judgment of the honourable Supreme Court in State of Maharashtra v. Mahalaxmi Stores [2002 (11) TMI 112 - SUPREME COURT OF INDIA]on the same item, it is not open to this court to examine the matter any further and we have to hold that crushing of boulders into different sizes of stone did not involve any "manufacturing". Unable to hold that proposed cancellation of eligibility certificate is based on mere change of opinion on a debatable issue. The Revenue authority in the present case is proceeding on the basis of a binding legal precedent and not merely on its own opinion. There can be estoppel against law. Even if eligibility certificate was issued, the Revenue authority can certainly act on established legal position.
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