SHREE DURGA OIL MILLS Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THE petitioner has sought the quashing of the order of assessment as per annexure-7 on the ground that the exemption available under the Industrial Policy Resolution, 1979, effective for the period 1979-83 has been denied by the assessing authority.

(2.) THE petitioner went into production with effect from 19th March, 1980. Under the Industrial Policy Resolution, 1979, it was not liable to pay purchase tax on raw materials. The relief was denied on the ground that imposition of tax on purchase of raw materials has not been exempted by a notification under section 6 of the Orissa Sales Tax Act. The question was the subject-matter of decision in O.J.C. No. 2090 of 1980 [1989] 74 STC 10 (Shree Durga Oil Mills v. Sales Tax Officer) and this Court has held that by operation of the principle of promissory estoppel, the State and its instrumentalities would be obliged to grant relief which was held out by the Resolution. Therefore, the assessment of purchase tax on raw materials was without jurisdiction. Following the said decision of this Court, we quash annexure-7 and direct opposite party No. 1 to reassess the liability of the petitioner on the basis of the law laid down in O.J.C. No. 2090 of 1980 [1989] 74 STC 10 (Orissa). The writ application is accordingly disposed of. No costs. Writ application disposed of accordingly.