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TMI Blog2002 (12) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 10 of the Kerala General Sales Tax Act, 1963 (for short the Act ). The assessee had obtained an eligibility certificate dated August 18, 1994 from the District Level Committee of sales tax exemption to smallscale industrial units. As per the eligibility certificate the assessee is entitled to exemption from payment of sales tax up to an amount of Rs. 6,55,942 in respect of the sale of bakery items manufactured by it for the period from June 19, 1993 to June 18, 2000. The assessing authority, however, rejected the claim for exemption made by the assessee on the ground that the said exemption was taken away by notification S.R.O. No. 404/94. The first appellate authority dismissed the appeals filed by the assessee for all the three yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in State of Orissa v. Orissa Road Transport Co. Ltd. [1997] 107 STC 204; (1998) 6 KTR 269 and State of Rajasthan v. Mahaveer Oil Industries [1999] 115 STC 29; (1999) 7 KTR 346. 4.. We have perused the order of the Tribunal as well as the orders of the assessing authority and of the first appellate authority. The assessing authority had originally completed the assessments for all the three years and granted the exemption allowed in the eligibility certificate. The assessment was reopened on the basis of Notification S.R.O. No. 404/94. Exemption claimed was denied in the reassessment order. The first appellate authority affirmed the said order relying on the said notification. Though the assessee had claimed that it is enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty certificate is obtained and produced the assessing authority has no option but to accept the same and to pass assessment order taking into account the items concerned, period of exemption and the amount of exemption allowed in the said certificate. If the assessing authority had any doubt either with regard to the genuineness of the eligibility certificate or with regard to the entitlement of the assessee to get the benefit of the notification in respect of the eligibility, certainly it is a matter for the assessing authority to raise the same before the competent authority who issued the eligibility certificate. In other words so long as the eligibility certificate issued by the competent authority is in force it is not a matter for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 499/ 90 by S.R.O. No.1729/93. Here it is relevant to refer to clause 12 of the S.R.O. No. 1729/93 which clearly provides that the industrial units which have been set up prior to the April 1, 1993 in pursuance of notifications mentioned in the Schedule, and as are entitled to claim any concession under any of them, shall continue to enjoy such concessions whichever is applicable in each case, notwithstanding that they have been superseded by this notification, and any proceedings pending or any application for concession to be filed in pursuance of such notification, shall be disposed of in accordance with the provisions contained in such notifications. It is further relevant to note that the Notification S.R.O. No. 499/90 is specifical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also to rely on the decisions having bearing on the questions. We note here the crucial points to be considered (1) in a case where an eligibility certificate has been issued by the competent authority under the notification whether is it open to the assessing authority or to the appellate authorities to deny the benefit of exemption without cancelling or varying the eligibility certificate in spite of the Notification S.R.O. No. 404/94. In other words whether a subsequent notification taking away the benefit of tax exemption prospectively can nullify the exemption already granted by issuing the eligibility certificate without it being cancelled? and (2) Whether the principle of promissory estoppel is applicable to the facts of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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