Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1963 – s.10 – Sick Industrial Companies (Special Provisions) Act Kerala General Sales Tax Act 1985 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Kerala General Sales Tax Act,1963 – s. 10 – Sick Industrial Companies (Special Provisions) Act, 1985 – ss. 17,18, 19 and 20 – Tax exemption – The case involves the withdrawal of tax exemption benefits granted to the appellant, who had revived a sick industrial unit under the Sick Industrial Companies Act – Government by exercising its power under Section 10(3) of the KGST Act, 1963 by an order of 2006 withdrew the exemption granted earlier – This prompted the appellant to file a petition in the High Court challenging the 2006 order – The High Court doubted whether the exemption could have been extended to the appellant alone instead of a class of industries and upheld the order of Government – The appellant approached the Supreme Court – Held: (Per Hrishikesh Roy, J.) : The power to grant exemption u/s. 10(1) is in respect of a class of persons and was never intended for an individual industrial unit like appellant – When this aberration was noticed and it was seen that amongst similarly engaged units in the same business, the appellant was the only one enjoying the benefit of exemption, the 2006 government order was issued withdrawing the exemption granted – Even though appellant was granted benefit of tax exemptions, it cannot be continued for further assessment years, as that would amount to perpetuating and condoning a wrong, which is opposed to public policy – Benefit of equitable doctrine of estoppel cannot be extended to the appellant as in that case the State Authority would be obligated to act in a manner which is contrary to legislative mandate – Judgment of High Court was upheld – (Per K.M Joseph, J.) (concurring): Appellant cannot pitch its case higher than at the limit under Order dated 25.11.1994 – Exemption of sales tax is contemplated for a period of two years – Maximum period in any case is 5 years – In the case of the appellant, the appellant enjoyed the benefit of the exemption till it was withdrawn on 21.11 2006 – Appellant enjoyed the benefit of exemption for nearly 4 years – Appellant is a company which is making profits – Appeal must fail. |
Judge | Hon'ble Mr. Justice Hrishikesh Roy |
Neutral Citation | 2022 INSC 408 |
Petitioner | Augustan Textile Colours Limited (now Augustan Textile Colours Pvt Limited) |
Respondent | Director Of Industries & Anr |
SCR | [2022] 15 S.C.R. 104 |
Judgement Date | 2022-04-08 |
Case Number | 2830 |
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