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2014 (9) TMI 112 - HC - VAT and Sales TaxRecovery of tax from successor company - Petitioner granted exemption u/s 4A - Held that:- From a perusal of the counter affidavit that the erstwhile Company was granted an exemption under Section 4-A of the Act exempting respondent No.4 from the payment of trade tax for a stipulated period, on the ground, that it was a new unit. The petitioner, upon purchase of the unit of respondent No.4, applied for continuation of the exemption under Section 4-A(2-B) of the Act - where there is a discontinuation of business of the manufacturer, who was eligible for exemption, the successor manufacturer may apply before the competent authority for grant of eligibility certificate and for exemption from payment of tax or for reduction in the rate of tax for the unexpired portion of the period for which exemption was granted to the former manufacturer. Condition imposed by the competent authority was accepted by the petitioner and that the petitioner availed the exemption from payment of trade tax for the remaining period. The petitioner, however, did not pay the tax of the earlier period which was required to be paid by the the earlier manufacturer and which became jointly and severally payable by the petitioner under the provisions of Section 3-C(2) of the Act by the petitioner - The petitioner cannot now turn around and contend that the said condition imposed was arbitrary or opposed to public policy or the condition was in contravention to the provision of sub-Clause (2) of Section 3-C of the Act. The petitioner is estopped from raising such contention at this stage, for the reason that having availed the exemption the petitioner cannot turn around and contend that at this belated stage that the said condition is a nullity being violative of the provisions of the Act or is opposed to public policy. The petitioner cannot approbate or reprobate at the same time - Decided against assessee.
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