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TMI Blog2010 (1) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... to the petitioners for the duration contemplated by the notification subject to the terms and conditions mentioned in the notification notwithstanding the withdrawal of those benefits w.e.f. 15.10.2002 by the State Government , when the Central Sales Tax was amended by the Finance Act No.20 of 2002 on 30.5.2002. In the Commercial Tax Revision No.1125 of 2008, M/s Swastik Components Private Limited Vs. Commissioner, Commercial Tax, U.P. Lucknow connected with Commercial Tax Revision Nos.1126 of 2008 and 1127 of 2008 (of the same company) the Court was called upon to decide the question as to whether the applicant- dealer, holding Eligibility Certificate under Section 4A of the UP Trade Tax Act for exemptions to pay Central Sales Tax for a period of eight years under the Notification dated 31.3.1995 from 17.1.1997 to 16.1.2005, on graded basis, will be entitled to the exemptions, after the amendment of the Central Sales Tax, vide Amendment in Section 8 (5) by Finance Act 20 of 2002, on the sales made to unregistered dealers outside the State of U.P, for which form C/D is not produced. M/s Swastik Components Private Ltd. in the aforesaid case had applied for eligibility certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial Tax Revision Nos.1126 of 2008 and 1127 of 2008, one of us (Hon. Sunil Ambwani, J.) after considering the questions of law relating to the principle of promissory estoppel held as follows:- "In this case the State Government granted exemptions under the authority given to it by the Central Act. When the same central act qualified these powers by a parliamentary amendment to a particular category of sales in the course of inter-state trade and commerce, it cannot be said that the State Government was required to issue a fresh notification or had a discretion vested in it to grant exemption or reduction in the rate of tax in variance with the central act. In the present case, the eligibility certificate under Section 4-A and the exemptions granted to the unit has not been withdrawn nor the rate of tax has been increased or the quantum of exemptions decreased to affect the industrial unit. There was no such promise extended to the new industrial unit that all the central sales in the course of inter-state trade and commerce subject to the conditions specified in the notification will be exempted from tax. The benefit of exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions to make the subsequent notification mapplicable to a case where the exemption was granted. With the introduction of value added tax the whole regime of applicability of sales tax laws have changed. The new laws do not conceive of transactions in inter-state sales with unregistered dealers. The amendments in sales tax laws have to be uniform and that all exemptions have to give way to the new laws. For the aforesaid reasons the sales tax revisions are dismissed." The judgment was challenged by the assessee in the Supreme Court in SLP (Civil) No.8395-8397 of 2009, M/s Swastik Components Pvt. Ltd. Vs. Commr. Commrl. Trade Tax, U.P. The Supreme Court disposed of the special leave petition with the following order:- "Although we agree with the view expressed by the High court in its impugned order, what we find from the impugned order is that before the High Court a relevant point has not been argued. That point arises in following terms: "32. That, it is further submitted that assuming that the applicant was liable to pay tax on inter-state-sales made on or after 13.5.02 without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The payment of higher rate of tax, if Forms C/D are not produced on interstate sales after 13.5.2002, does not effect the set off of such higher rate of tax under the Eligibility Certificate. Shri Aggarwal would submit exemption given to new unit is an incentive linked to the production, if the units satisfy all other conditions. The set off of the trade tax or Central Sales Tax Act is not linked to the rate, which can either vary according to the notifications issued in exercise of statutory powers, or may be allowed on any reduced rate. He would submit that the rate of tax either by way of exemption or otherwise, has nothing to do with the limit of exemption under Section 4-A of the Trade Tax Act. The object of amendment to Section 8 (5) restricting the powers of the State Government to issue notifications in public interest, to give exemptions of reduced rate of tax, on production of Form C/D only with effect from 13.5.2002 has nothing to do with the object and purpose of the exemption granted to the units under the Eligibility Certificates from tax for specified number of years on graded basis. Shri S.P. Keswarwani on the other hand submits that where the unit has committed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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