Withdrawal of fiscal tax exemption upheld where later notification superseded earlier concession and recognition certificate gave no vested right.

Exemption from purchase tax under a notification issued under section 4-B of the Uttar Pradesh Sales Tax Act, 1948 was held to depend on the notification itself, not on the recognition certificate held by the dealers. A later notification could validly supersede the earlier exemption and withdraw the concession under the power to rescind statutory instruments read with the enabling provisions, so the exemption ceased when the later notification came into force. The court also held that the grant of exemption was only a fiscal concession and that no factual basis for promissory estoppel was made out. The challenge failed and the writ petitions were dismissed.

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Issues: Whether the State Government could validly supersede the earlier exemption notification issued under section 4-B of the Uttar Pradesh Sales Tax Act, 1948 and impose purchase tax at 2 per cent, notwithstanding the recognition certificate held by the petitioners, and whether the challenge based on promissory estoppel was maintainable.

Analysis: The exemption from purchase tax was traced to the notification issued under section 4-B of the Uttar Pradesh Sales Tax Act, 1948, and not to the recognition certificate itself. The recognition certificate was only a qualifying condition for availing the benefit notified by the State Government. Once the later notification superseded the earlier exemption notification, the exemption ceased, and the State Government was entitled to vary or withdraw the concession in exercise of the power under section 21 of the Uttar Pradesh General Clauses Act, 1904 read with section 4-B of the Uttar Pradesh Sales Tax Act, 1948. The Court also held that the grant of exemption was a fiscal concession and that no factual basis for promissory estoppel was established.

Conclusion: The impugned notification imposing purchase tax at 2 per cent was upheld, and the challenge by the petitioners failed.

Final Conclusion: The writ petitions were dismissed, and the earlier interim orders stood vacated.

Ratio Decidendi: An exemption granted by a fiscal notification can be withdrawn or superseded by a later notification under the enabling statute and the general power to rescind statutory instruments, and a recognition certificate does not by itself create an immutable right to exemption.

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