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TMI Blog1988 (7) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... General Sales Tax Act, 1973 (for short "the Act") to the effect that it was necessary and expedient in the interest of rural industries to exempt all tiny rural industrial units, set up on or after the date of publication of the said notification, in the Official Gazette, whose capital investment on machinery and equipment does not exceed rupees one lac, and in whose favour certificate of genuineness is issued by the Industries Department of respondent No. 1, from payment of sales tax under the Act on the purchase or sale of goods. The exemption was made subject to the following conditions: (1) An exemption certificate in the form annexed to the notification was required to be obtained by the owners of the rural tiny industrial units fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion on the turnover not exceeding Rs. 5 lacs in a year. It is not in dispute that in the case of all the petitioners their turnover exceeds Rs. 5 lacs in a year and by the notification annexure P.2 they have been made liable to payment of tax under the Act on the turnover exceeding Rs. 5 lacs. The mainstay of the petitioners is that vide notification dated 2nd June, 1979 they were given complete holiday from payment of tax under the Act for a period of two years from the date of grant of exemption certificate by the Assessing Authority, but vide notification annexure P.2 they have been made liable to payment of tax on the turnover exceeding Rs. 5 lacs in a year. According to them, respondent No. 1 is estopped from withdrawing the exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion granted earlier in particular cases by imposing fresh conditions. I have heard the learned counsel for the parties. I am of the considered view that the tiny rural industrial units established by the petitioners when the notification dated 2nd June, 1979 was in force are entitled to avail of total exemption from payment of tax under the Act for a period of two years from the date of grant of exemption certificates in their favour by the Assessing Authority. The notification, annexure P.2, can only operate prospectively in the sense that it shall apply to the industrial units which are established after its coming into force on 31st December, 1987. Respondent No. 1 is estopped from withdrawing or curtailing the concessions in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Government is virtually going back on its promise by issuance of the notification, annexure P.2 which, as already observed, can operate only in respect of the units which are established after it has come into force. Mr. Mohunta also places reliance on Shri Bakul Oil Industries v. State of Gujarat [1987] 64 STC 304 (SC); AIR 1987 SC 142, to contend that the exemption granted by the Government was only by way of concession. Such a concession can be withdrawn at any time. In Shri Bakul Oil Industries case [1987] 64 STC 304 (SC); AIR 1987 SC 142 no such proposition has been laid down in clear terms. Their Lordships found on facts that the appellant had not established its industry in pursuance of the notification which had granted concession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commissioning of an industry after completion of construction work which had been commenced long before the notification was made by the Government. In respect of such an industry as the present one, the issuance of a notification granting tax exemption would only constitute a fortuitous circumstance and by no stretch of imagination can it ever be said that the commissioning of the industry was directly the outcome of the Government's notification granting tax exemption." The well-established position of law as regards the rule of promissory estoppel was once again reasserted in Shri Bakul Oil Industries case [1987] 64 STC 304 (SC); AIR 1987 SC 142 thus: "No doubt the exemption granted by the Government was only by way of concession for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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