9911796707
TMI Blog2009 (4) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... ption notification dated 8 -6 -1998 granted in favour of the appellant -Company under Section 9 of the Central Sales Tax Act, 1956 (hereinafter called as 'CST Act' for short) read with Section 19C of the Karnataka Sales Tax Act, 1957 (hereinafter called as the "KST Act' for short) notified in the Karnataka Gazette in exercise of powers conferred upon the State Government under Section 19C of the KST Act, exempting the company from payment of sales tax under KST Act on the sale of finished goods manufactured by the appellant in its newly established unit, near Hoskote, Bangalore Rural District, for a period of 12 years from the date of commencement of commercial production with certain terms and conditions. The said exemption not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t petition. The correctness of the said order is questioned in this appeal. The ground of attack of the impugned notification by the appellant is that payment of sales tax exemption in respect of inter -State sale of its goods was granted in favour of the appellant's company on certain terms and conditions in the year 1998. The company has been established near Hoskote, Bangalore Rural District, to manufacture Volvo Chassis for trucks. There is inter -State sale transactions of the manufactured goods of the appellant's company. The exemption from payment of sales tax to the department was granted by the State Government with certain terms and conditions in its factory. The sales tax exemption granted in favour of the appellant is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s error in law in not quashing the impugned notification, assessment order and proposition notices issued for reassessment of the sales tax under the provisions of the CST Act. Further, it is urged that the learned Single Judge without considering the decision in MRF's case and other decisions of the Supreme Court on the promissory estoppel has dismissed the writ petition. The reasons assigned in the order of the learned Single Judge are also erroneous in law. It is further contended that the State Government is estopped from issuing the impugned notifications to modify the terms and conditions to earlier sales tax exemption notification in view of the assurances given to the appellant -company by the State Government to establish its c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f tax exemption in terms of Government Order No. CL 119 SPI 96, dated 5th November, 1996; (b) no part of plant and machinery is old/used/second hand with the exception of imported (from outside the country) second hand plant and machinery." 8. The amendment to sub -section (5) of Section 8 of the CST Act by way of amendment by Act No. 20 of 2002 with effect from 11 -5 -2002 was made to see that the exemption should be in conformity with the statutory provisions of sub -section (4) of Section 8 of the CST Act, 1956 which reads as follows: "(4) The provisions of sub -section (1) shall not apply to any sale in the course of inter -State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany is a benefit. Therefore, the same cannot be claimed as a matter of right. The amendment to the provisions of Section 8(5) is prospective from 11 -5 -2002. After the amendment to Section 8(5) the requirement of the conditions as laid down in sub -section (4) of Section 8 of CST Act shall be mandatorily fulfilled by the assessee. 10. It is not the case of the appellant that prior to the financial year 11 -5 -2002, reassessment of tax is made by the Department by applying the amended provision of Section 8(5) of the Act. The State Government has granted sales tax exemption on the basis of unamended provision of Section 8(5) of CST Act. The said benefit cannot be availed after amendment to the said provisions and fulfills the conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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