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TMI Blog2015 (8) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be deemed to be valid. Petitioner and all the dealers were having every reasonable expectation and assurance from the Government that entire Commercial Tax (VAT) on different brands of Indian Made Foreign Liquor has been included in the M.R.P., therefore, petitioner /dealers have to pay the same and if Government would modify Commercial Tax(VAT) in that event M.R.P. shall also be modified accordingly. - Applying the principle of promissory estoppel and doctrine of reasonable expectation, the harmonious interpretation of both the Government Orders, would be that reduced rate of 15% would be applicable w.e.f. 01.04.2014. If Government is allowed to charge Commercial Tax @ 20% w.e.f. 01.04.2014 to 23.06.2014, it would amount to arbitrary exercise and unjustified action on the part of the Government which would be hit by Article 14 of the Constitution of India. - Decided in favour of assessee. - Writ Petition No. 1531 (MS) of 2015 - - - Dated:- 8-7-2015 - Alok Singh, J. For the Appellant : Mr. Nikhil Agarwal with Mr. S.K. Posti, Adv For the Respondent : Mr. Syed Nadim, Standing Counsel for State of Uttarakhand JUDGMENT Hon ble Alok Singh, J (Oral) For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent brands of Indian Made Foreign Liquor on the M.R.P. fixed by the Government of Uttarakhand inclusive of 15% VAT. Vide Notification/Government Order No. 602 dated 23.06.2014, 15% Commercial Tax (VAT) was directed to be recovered on Indian Made Foreign Liquor w.e.f. publication of the notification in the Official Gazette. Taking advantage of the Notificaton/Government Order No. 602 dated 23.06.2014, Annexure No. 6 (impugned in the present petition), a show cause notice was issued to the petitioner on 02.07.2014, saying that as per the Government Order dated 23.06.2014, VAT @ 15% shall be recovered w.e.f. 23.06.2014, therefore, as to why, petitioner should not be levied VAT @ 20% w.e.f. 01.04.2014 to 22.06.2014. Petitioner has preferred its reply on 08.08.2014 to the show cause notice and it was stated in the reply that since Government itself has included 15% VAT in the M.R.P., therefore, petitioner has sold/supplied different brands of Indian Made Foreign Liquor on the M.R.P. fixed by the Government, therefore, petitioner cannot be asked to pay VAT @ 20% w.e.f. 01.04.2014 to 22.06.2014. Learned Assessing Officer did not agree with the petitioner and was pleased to pass imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s vehemently submitted that what should be the rate of VAT falls within the domain of the Department of Finance, therefore, rate of VAT can only be fixed by the Department of Finance and Excise Department has no business to reduce the rate of VAT as fixed by the Department of Finance. Further contends that since 20% VAT was fixed by the Department of Finance, vide Government Order No. 379 dated 28.03.2013 and same was reduced by the Department of Finance to 15% vide Government Order No. 602 dated 23.06.2014 w.e.f. publication of the Government Order dated 23.06.2014, therefore, supplier or dealer of the liquor has to pay VAT @ 20% w.e.f. 01.03.2014 till 22.06.2014. He further contends that even if the petitioner was asked to recover 15% VAT by the Excise Department but it will not take away the legal right of the Department of Finance to recover the tax, which was prevailing prior to the Government Order dated 23.06.2014. Sub-Section (4) of Section 4 of the Uttarakhand VAT Act, 2005 reads as under: (4). The State Government may, by notification in the official gazette, declare different rates in respect of different goods, or add or remove any schedule (s), or add to, amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r shall be authenticated in such manner as may be specified in the rules to be made by the Governor and validity of an order or instrument which is so authenticated shall not be called in question on the ground that it is not an order or instrument made or executed by the Governor. Bare perusal of Annexure No.1 to the writ petition, Notification/Government Order No. 126 dated 28.02.2014, would reveal that it was issued in the name of the Governor of the State of Uttarakhand and as per Rule 22 of Annexure No.1, Notification/Government Order dated 28.02.2014 no dealer shall supply or sell liquor over and above the M.R.P. fixed by the Government and M.R.P. shall be inclusive of Commercial Tax (VAT). At the bottom of Annexure No.1, it is clearly mentioned that it was published /notified in the official gazette of the State of Uttarakhand. Second notification/Government Order No. 216 dated 31.03.2014 would reveal that the Government was pleased to calculate Commercial Tax (VAT) @ 15% while fixing the M.R.P. of different brands of Indian made foreign liquor. Vide third Notification/Government Order No. 43-55 dated 01.04.2014, Government of Uttarakhand was pleased to fix M.R.P. of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was reduced @ from 20% to 15%, the intention of the Government is clear that for the assessment year, Commercial Tax (VAT) should be charged @ 15% instead of 20%. Now, the only question of interpretation remains is as to whether reduced rate of Commercial Tax (VAT) @ 15% should be charged w.e.f. 01.04.2014 or w.e.f. 23.06.2014? The moment Government vide Notifications/ Government Orders dated 31.03.2014 and 01.04.2014 has decided to charge/calculate commercial Tax @ 15% on different brands of Indian Made Foreign Liquor w.e.f 01.04.2014 with the stipulation that no dealer shall sell the liquor more than the M.R.P. fixed by the Government inclusive of Commercial Tax @ 15%, petitioner was bound to sell the liquor on the M.R.P. ,therefore, now Government is estopped to allege that since, Department of Finance has not reduced the Commercial Tax @ 15% w.e.f. 01.04.2014 and has reduced it w.e.f. 23.06.2014, therefore, petitioner should pay Commercial Tax @ 20% from 01.04.2014 to 22.06.2014. Petitioner and all the dealers were having every reasonable expectation and assurance from the Government that entire Commercial Tax (VAT) on different brands of Indian Made Foreign Liquor ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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