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2011 (11) TMI 145 - HC - VAT and Sales TaxBusiness efficacy - State invited tender for supply of BCG vaccines – petitioner having business in state of Maharashtra quoted ₹ 28.60 + 5% VAT – another party having business in Tamil Nadu quoted same price with 4% VAT( applicable in state) – tender of second party accepted - w.e.f. 11.07.2011 Sate of Tamil Nadu also raised vat to 5% - second party agreed to absorb burden of extra 1% - petitioner sought the matter to be reviewed and its offer to be accepted - Held that:- Business requires total freedom to decide and take action in the best interest of business. Every business is profit driven. If the action of the State where a bargain is concluded, whether by way of a concluded contract or by way of a standing offer requiring contractual obligations coming into being with each indent being placed, is fair and reasonable, subsequent events which were unforeseen would not make the action unreasonable. To accept the petitioner argument would mean that it would be impossible for the Government to lay down principles of comparative price neutralization and justify the decision to prefer one offer over the other. - Writ petition is dismissed.
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