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2015 (10) TMI 214 - HC - VAT and Sales TaxBenefit of exemption from entry tax - Whether or not M/s. VM Extrusions Private Limited (the respondent) is entitled to exemption of entry tax on the principle of promissory estoppel - Held that:- The State also issued a notification dated April 26, 2002 under the 2001- 06 Policy explaining the new industries that are included in the thrust sector. So far as "cement and downstream industries" under the "mineral based industries" are concerned, manufacture of HDPE woven bags is included under this notification - industrial unit set up by the respondent is included in the thrust sector in the "mineral based industry" as envisaged under the 2001-06 Policy. The fact that the respondent is a medium scale industry is admitted - The respondent commenced its commercial production on June 16, 2004. Had it commenced production after November 1, 2004, then it would have got exemption irrespective of the fact whether it was set up in pursuance of the 2001-06 Policy or the 2004-09 Policy. - it is not relevant under which policy the notification was issued. The relevant thing is whether the respondent could claim exemption of entry tax on the principle of "promissory estoppel or not". The respondent has set up its own industrial unit in pursuance of the promise given by the State Government under the 2001-06 Policy. It had already got exemption from payment of electricity duty as envisaged under the 2001-06 Policy. The Government has come out with the notification granting exemption in entry tax but not within the time stipulated under the 2001-06 Policy. The Government was negligent and there was slackness on its part - Once the Government had given a promise to give exemption of the entry tax in order to give thrust to industrial growth and in fact such benefit from exemption of entry tax for seven years is being given to all similarly situate industries, then there is no justification to limit it only for industrial unit starting production after November 1, 2004 especially when such notification ought to have been issued within 60 days of issuance of the 2001-06 Policy namely in 2002 itself. - Decided against Revenue.
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