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2013 (6) TMI 409 - HC - VAT and Sales TaxExemption from VAT on milk powder and the vitaminised infant milk foods - Public interest - Doctrine of promissory estoppel. - period between 01.04.2006 to 01.08.2006. - Since the exemption notification was withdrawn, the petitioner and other co-operatives made a concentrated effort to convince the Government to reintroduce such concession. - On 02.08.2006, the Government of Gujarat issued a fresh notification in exercise of powers in Sub-section (5) of Section 8 of the Central Sales Tax Act,1956 and reintroduced concessional rate of duty at 2% on whole milk powder or skimmed milk powder. Held that:- If the partial exemption enjoyed by the petitioner was withdrawn mechanically and reintroduced shortly thereafter, the question of examining the petitioner’s grievance in the context of the submissions made before us would arise. In the present case, however, we notice that such withdrawal was also based on public interest. We fail to see how the petitioner can bring in the element of promissory estoppel. It is not the case of the petitioner that on the basis of the exemption granted, it altered the position to its disadvantage. It was suggested that the petitioner had not passed on burden of the differential duty for the intervening period. Even if it was so, this can hardly bind the Government into granting the exemption for such period. In any case, the petitioner’s stand that the differential duty was not collected from the purchasers due to ignorance of withdrawal of exemption also appears to be one of doubtful proposition. We may recall, soon after the exemption was withdrawn, the Gujarat Co-operative Milk Market Federation Ltd., an apex body of the milk producing co-operatives had, on 10.06.2006, made a detailed representation before the Government to reintroduce the exemption. The stand of the petitioner that they were not aware about the withdrawal of the exemption, therefore, is not borne out from the record. The decision in case of M/s. Motilal Padampat Sugar Mills Co. Ltd. Vs. State of Uttar Pradesh and others (1978 (12) TMI 45 - SUPREME Court) is of course well known judgement in the field of promissory estoppel. Since we have held that this is not a case where such principle can be applied, we do not find it necessary to discuss the issue any further. - Decided against the assessee.
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