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TMI Blog2006 (6) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of one writ petition. Brief facts of the case in W.P. No. 24575 of 2005 are as under: The petitioner is a dealer registered under the provisions of the Karnataka Sales Tax Act, 1957 (hereafter referred to as "the KST Act", for short) and now under the Karnataka Value Added Tax Act ("the KVAT Act", for short). In exercise of the powers conferred under section 8-A(1) of the KST Act, the Government of Karnataka by issuing notification produced at annexure "B" dated December 30, 1993, exempted with immediate effect the tax under the KST Act in respect of sale of food and drinks by new tourism units situated in the places specified in the said notification, i.e., B and C grade places for the period of three and seven years respectively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s dated April 18, 2005 bearing Nos. FD 56 CSL 2005(1), FD 56 CSL 2005(2) and FD 56 CSL 2005(3). The copies of the abovenoted notifications are produced vide annexures "C", "C 1" and "C 2" respectively along with the writ petition. The said notifications are issued under the provisions of section 5(2) of the KVAT Act and relevant portion of the notification bearing No. FD 56 CSL 2005(1) reads thus: "In exercise of the powers conferred by sub-section (2) of section 5 of the Karnataka Value Added Tax Act, 2003 (Karnataka Act No. 32 of 2004), the Government of Karnataka hereby exempts with effect from the first day of April, 2005, the net tax payable by a new industrial unit under the said Act, on the sale of goods manufactured by it, subje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ", "G 1" and "G 2", and the demand notice vide annexure "H" by filing the writ petition. In all other writ petitions, almost similar facts are found and in all these matters, petitioners were exempted from paying taxes in pursuance to the Government notification dated December 30, 1993 for certain period. Petitioners have availed the benefit of the said exemption already for a portion of exempted period and they are yet to avail the tax exemption for the remaining period which is prescribed in the certificate of exemption. Therefore, all the petitioners have approached this court by filing these writ petitions, questioning the validity of the assessment orders, demand notices and endorsements issued by the department, by which, the exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he notification issued under the KST Act cannot be given go by when the new enactment does not cancel or rescind the said notification. Therefore, the certificates given to the petitioners granting tax exemption to them in pursuance to the Government notification, annexure B, issued earlier under the KST Act will continue to operate till they expire by lapse of time. As aforesaid, in the exemption certificates, it is specifically stated by the tourist department as to up to what time the petitioners are entitled to for the tax exemption. There cannot be any doubt that the Government can resile from its promise in public interest. Government can also resile from its promise even in the absence of public interest if no one is adversely affe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "C 1" and "C 2" issued under section 5(2) of the KVAT Act, the industrial unit is eligible for tax exemption on the sale of goods manufactured by it under the notification issued by the Government under the provisions of the KST Act. It is also made clear in the said notifications vide annexures "C", "C 1" and "C 2", that the tax exemption extended in these notifications shall continue to remain for the unavailed portion of the period and the extent of tax exemption extended in the relevant notification or in Government order. Thus, even the notifications issued under the KVAT Act vide annexures "C", "C 1" and "C 2" dated April 18, 2005, make it amply clear that the petitioners who are granted exemption earlier under the KST Act from payin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lists, had walked into such "C" grade cities and established their hotels/ industries by spending huge amounts of moneys for construction of hotels, building up of infrastructure, etc., wherein their industrial activities could commence. Under these circumstances, when no public interest is sought to be pressed in service by the State for withdrawal of this incentive rebate, the equity which had arisen in favour of the petitioners remained untouched and undisturbed by any overwhelming and superior equity in favour of the State, entitling it to withdraw this tax rebate in a premature manner leaving those promises high and dry before the requisite period of seven years earlier guaranteed to them by way of tax rebate had got exhausted. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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