TaxTMI 
TaxTMI 
2012 (4) TMI 553
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.... period between 1st of October, 1997 to 31st of March, 2004. The case of petitioner is that vide annexure P/5, the petitioner, who was manufacturing vegetable and edible oil was exempted from payment of entry tax on all the raw material as defined under section 2(r) of the M.P. Vanijyik Kar Adhiniyam, 1994. The contention of the petitioner is that crude edible oil was used for manufacturing of vegetable and edible oil, and under Notification (annexure P/5) which was extended up to 31st of March, 2007 was restricted vide annexure P/1 up to 31st of March, 2004, meaning thereby that the petitioner was liable to make payment of entry tax from 1st of April, 2004 for which earlier he was granted exemption. Shri Vivek Dalal, learned counsel ....
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....ible oil. For ready reference, we quote annexure P/5 which reads thus: "Notification under section 10 of entry tax allowing exemption on raw material. No. A-3-10-2000-ST-V (82) dated 6th September, 2001.-In exercise of the powers conferred by section 10 of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No. 52 of 1976), the State Government hereby exempts the class of goods specified in column (1) of the Schedule below from payment of entry tax under the said Adhiniyam for the period from the date of the publication of this notification* (31st March, 2005) to the extent specified in column (2) of the said Schedule: SCHEDULE Class of goods Restrictions and conditions subject to which ex....
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....tification (annexure P/5) it was exempted from payment of entry tax. Vide annexure P/5, aforesaid exemption was given up to 31st of March, 2005, and by a subsequent Notification dated March 31, 2006 bearing No. FA-3-60-05-1-V(14) such exemption was extended up to 31st of March, 2007 by entry No. 9 of such notification. Net result of the aforesaid two notifications was that up to 31st of March, 2007, the petitioner was not liable to make payment of entry tax on the raw material used for manufacturing of vegetable edible oil. On April 12, 2007, the State Government had issued another notification under section 10 of the M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to as, "Entry Tax Act") by which....
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....s of dealers or persons, or any goods or class of goods, from the payment of entry tax under this Act, in respect of all or any of the local areas, for such period as may be specified in the notification; (ii) any dealer or class of dealers, from any provision of the Act as may be specified in the notification: Provided that in respect to the period during which the Ordinance repealed under section 24 was in force, the retrospective effect may be given from the date of the commencement of the said Ordinance as if the liability to pay tax arose under this Act and for that purpose it shall and shall always be deemed that the provisions of this Act to the extent they correspond to the provisions of the said Ordinance were in force during....
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.... the aforesaid section. In our view, the High Court was justified in holding that exemption could not be withdrawn with retrospective effect by issuance of subsequent notification dated April 10, 1995, superseding the notification dated November 2, 1994. Restricting the exemption of tax to certain fertilizers in the same class of chemical fertilizers certainly amounted to increasing the liability to tax of the dealer with retrospective effect, which in our opinion, cannot be issued in view of the proviso to section 25 of the Act. Accordingly, we hold that the notification dated April 10, 1995, denying exemption to NPK 23:23:0 retrospectively is illegal and invalid and are in agreement with the view expressed by the High Court on this questi....