9911796707
TMI Blog2025 (3) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... -10-2006 (Annexure P-4) issued by the State of Chhattisgarh in exercise of the powers conferred by Section 15-B & 72(i)(b) of the Chhattisgarh Value Added Tax Act, 2005 (for short, 'the Chhattisgarh VAT Act') read with sub-section (5) of Section 8 of the Central Sales Tax Act, 1956 (for short, 'the CST Act') incorporating the amended provisions of Section 8 (5) of the CST Act. 2. It is the case of the petitioner that the petitioner Company is engaged in the business of manufacture and sale of iron and steel products and was registered with the Commercial Tax Department. The petitioner Company was exempted from payment of taxes including Central Sales Tax under the notification dated 07-11-1997 from 07-11-1997 till 18-04- 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company by issuing subsequent notification with retrospective effect. It is also the case of petitioner that the notification would not apply to the petitioner Company so far as the tax exemption and acting on the concession granted by the State Government, the petitioner Company has made huge investment of more than Rs. 550 crores and thus entitled for exemption applicable up to 17-04- 2013, which cannot be taken away on the principle of promissory estoppel and which has been sought to be quashed. 3. Return has been filed by the State / respondents stating inter alia that though the benefit of exemption from payment of taxes including Central Sales Tax was granted to the petitioner Company under the notification dated 07-11-1997 which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the petitioner Company has challenged the notification dated 31-10-2006 after almost ten years and as such, the writ petition deserves to be dismissed. 6. We have heard learned counsel for the parties and considered their rival submissions made herein-above and also went through the record with utmost circumspection. 7. It is not in dispute that pursuant to the notification dated 07-11-1997, the petitioner Company was granted exemption as the petitioner Company is said to have invested more than Rs. 550 crores in Integrated Steel Plant and the benefit of exemption started from 07-11-1997, thereafter on 10- 5-2002, Section 8 (5) of the CST Act was amended making fulfillment of Section 8 (4) of the CST Act (production of C-Form) mandat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of production of Form 'C' and 'D' as the case may be in contrast to the absolute power of exemption/partial exemption that was permitted under the unamended Act. It is worth noting that the aforesaid amendment is prospective in nature and has been made applicable with effect from 11.05.2002 and is not applicable from any anterior date or to transactions prior to the aforesaid date. In other words, the absolute power initially conferred under Section 8 (5) upon the State Government to grant exemption/partial exemption of tax in connection with inter-State sale, trade or commerce with the amendment was circumscribed and restricted to the fulfilment of the requirement of Section 8 (4) of the CST Act which prescribes for the submission of Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to subsist and does not get impacted by the subsequent amendment of Section 8 (5) inasmuch as there is nothing in the amended provision which provides for taking away such a right granted to the assessee-respondent. 29. The State Government while applying the aforesaid amended Section 8 (5) was not justified in taking away such a right accrued to the assessee-respondent on mere prospective amendment of Section 8 (5) without revoking the Entitlement Certificate dated 24.03.1998 without notice or opportunity of hearing. 30. In view of the above facts and circumstances, on the above short point, the State Government was not competent to issue the impugned notices for revising the assessment of the assessee-respondent and to demand the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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