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2013 (1) TMI 695 - HC - VAT and Sales TaxWhether the State Government after having participated in the proceedings before the Board for Industrial and Financial Re-Construction (BIFR), can resile from giving sales tax exemption and concessional Central Sales Tax (CST) for a further period in the light of the sickness of the appellant-company and proceed to act in a manner contrary to the directions contained in the order of BIFR without having preferred an appeal against the said order? Held that:- Though, it was strenuously argued by the Special Government Pleader (Taxes) that the Board as per exhibit P6 scheme and exhibit P7 order has left the matter to the discretion of the State Government, we are not impressed by the said argument. What was directed by the Board as per exhibit P7 was that the sales tax authorities would consider the reliefs in order to ensure long term viability of the appellant-company and would also not raise any further demand (emphasis added). The discretion whatever left with the respondent-Government as per exhibit P6 scheme and exhibit P7 had to be exercised in a reasonable manner. Thus no hesitation to hold that the refusal of the State Government to exercise its discretion to extend the benefit as envisaged by exhibit P6 scheme and exhibit P7 order to the appellant-company was not reasonably exercised. The impugned judgment is set aside. Exhibit P9 order as well as exhibits P11 to P16 and subsequent notices issued consequently are quashed. We direct the respondent-State to reconsider the matter and pass fresh orders
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