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2015 (8) TMI 104 - HC - VAT and Sales TaxReduced rate of VAT on Liquor - Application to enforce the Notification/Government Order dated 23.06.2014, w.e.f. 01.04.2014 - Held that:- Petitioner has supplied the different brands of Indian Made Foreign Liquor at the M.R.P. so fixed by the Government inclusive of 15% Commercial Tax (VAT). It is also not in dispute that neither any other dealer nor petitioner could have recovered any amount from the customer over and above the M.R.P. fixed by the Government. - all the three Government orders dated 28.02.2014, 31.03.2014 and 01.04.2014 were issued by the Competent Officers who were subordinate to the Governor of the State, therefore, every dealer including the petitioner was duty bound to obey the same. The net conclusion of these Government Orders would be that Government has decided to reduce the rate of Commercial Tax (VAT) from 20% to 15% w.e.f. 01.04.2014 and M.R.P was fixed inclusive of Commercial Tax (VAT) @ 15%. In view of Article 154 and 166 of the Constitution of India, all the three above Notifications/Government Orders shall be deemed to be valid. Petitioner and all the dealers were having every reasonable expectation and assurance from the Government that entire Commercial Tax (VAT) on different brands of Indian Made Foreign Liquor has been included in the M.R.P., therefore, petitioner /dealers have to pay the same and if Government would modify Commercial Tax(VAT) in that event M.R.P. shall also be modified accordingly. - Applying the principle of promissory estoppel and doctrine of reasonable expectation, the harmonious interpretation of both the Government Orders, would be that reduced rate of 15% would be applicable w.e.f. 01.04.2014. If Government is allowed to charge Commercial Tax @ 20% w.e.f. 01.04.2014 to 23.06.2014, it would amount to arbitrary exercise and unjustified action on the part of the Government which would be hit by Article 14 of the Constitution of India. - Decided in favour of assessee.
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