Justice MR Shah: We have considered all entries, and in this present case it is admitted that after making declaration under form 26. respondent essar steel did not use the same and sold it to essar power.
SC: we have held that essar steel ltd did not comply with original entry. as per latest incentive policy benefit was eligible to certain industries. Power producing industries were ineligible for the same and thus not essar was not eligible for purchase tax exemption.
SC: While exemption notification must be liberally construed, the beneficiary must fall within ambit of the notification. Promissory estoppel will not be applicable in this case. essar steel furnished wrong and false information.
SC: In taxing matters doctrine of promissory estoppel is not as such applicable. Rules of promissory estoppel cannot be used to amend or alter rules framed in pursuance with a statute.
SC: We have upheld the penalty. When goods were transferred to ineligible units. the penalty is justified. The Gujarat HC verdict is set aside and appeals allowed accordingly
