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2017 (3) TMI 1651 - HC - VAT and Sales TaxExemption from payment of Sales Tax / Commercial Tax as also Central Sales Tax - effect of subsequent notification - petitioner's contention is that the State of Madhya Pradesh with an aim and object to encourage the generation and consumption of electricity generated through non-conventional power generation system, issued a notification dated 28/02/1995 and granted exemption from payment of Sales Tax / Commercial Tax as also Central Sales Tax subject to fulfillment of certain terms and conditions as mentioned in the notification - The petitioner's contention is that subsequent notification cannot be made applicable with retrospective effect and amount which has been accrued upon power generation system and purchasers like the Company, cannot be extinguished on account of subsequent notification issued by the State Government. Held that: - the State / respondents vide notification dated 28/02/1995 granted exemption to the dealers who will set up non-conventional power set up from the non-conventional sources, meaning thereby, the State respondents with the intention to promote the use of nonconventional sources has issued the notification. Further State respondents has included the dealers who will consume such power will be given exemption in commercial tax for those years from the date of commencement of the consumption - It is pertinent to mention that the notification dated 28/02/1995 do not provide for any cutoff date for the dealers / investors to set up plant. The State respondent respectfully submit that the MPGST, 1958 stood repealed by the enactment of the M.P. Commercial Tax Act, 1994 and Section 17 of the Act of 1994. In the considered opinion of this Court, no retrospective withdrawal of exemption is permissible - In the case of State of M. P. Vs. G. S. Dall & Flour Mills [1990 (9) TMI 70 - SUPREME Court], the apex Court has held that while a notification can be prospective or retrospective, only a prospective operation can be given to a notification rescinding an exemption granted earlier. The subsequent notification cannot be construed to have a retrospective operation. A right which has already accrued in favour of the petitioner cannot be extinguished by a subsequent notification, specially when the petitioner has acted upon on the basis of first notification dated 28/02/1995 - the impugned notification to the extent it is made applicable with retrospective effect is hereby quashed. The matter is remanded back to the State Level Committee to pass a fresh order by taking into account the first notification issued by the State Government dated 28/02/1995 - petition disposed off.
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