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2017 (3) TMI 1648 - HC - VAT and Sales TaxBenefit of deferment of tax - H.P. VAT Act, 2005 - whether the principle of promissory estoppel is applicable to the facts of the instant case? Held that: - Admittedly, the notification dated 23.7.1999, remained in force fully for a period of 5 years, whereby the deferred payment of sales tax was available to the units relating to Mini Steel Plants induction / Arc / Submerged furnaces and / or rolling mills, only available up till 23.07.2004. After 23.7.2004, the notification ceased to exist and it is only vide notification dated 30.3.2005, that the scheme for making deferred payment of tax was extended to the ‘A’ & ‘B’ category areas, but as the unit of the petitioner was manufacturing SS/MS Ingot, billets and TOR SARIA, which admittedly fall in the negative list, the petitioner obviously was not entitled to the deferred payment of tax. It has come on record that even the commercial production was commenced by the petitioner almost 16 months after issuance of the notification dated 30.3.2005. Thus, it is evidently clear that the petitioner was not even born during the currency of the notification dated 23.7.1999, which as observed earlier was valid only for five years up till 23.7.2004. The petitioner had taken no steps whatsoever for setting up its industrial unit during the currency of the notification dated 23.7.1999, which remained operative up till 5 years i.e. 23.7.2004 and whatever steps were taken to set-up the industry including the registration with the Industry Department was taken after 23.07.2004 i.e. after the scheme has come to an end. All the other effective steps for setting up the industrial unit were taken by the petitioner when the notification dated 30.3.2005 had been issued. However, since the goods manufactured by the petitioner fell within the negative list, it was not entitled to the benefit of the Scheme. The doctrine of promissory estoppel is clearly not attracted, as the unit of the petitioner admittedly falls within the negative list and it is therefore not entitled to the benefit of deferred payment of tax that too under the notification dated 23.7.1999. Petition dismissed - decided against petitioner.
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