V. Rengasamy, J. (Vice Chairman) - (1.) THESE original petitions have been filed challenging the notice in Rc.No. 3196/2000/A3 of the first respondent dated November 17, 2000 and also the amendment proceedings in Proc. No. 4002/A1/99 -26 of the third respondent dated September 15, 2000.
(2.) THE facts are to be narrated in brief : The petitioners who are manufacturers of maida, rava, and atta, had availed the benefit of waiver of sales tax not exceeding Rs. 1,35,30,000 for five years from July 1, 1998 to June 30, 2003 by obtaining the eligibility certificate under the Interest -free Sales Tax Waiver Scheme as per the G.O.Ms.No. 500 Industries (MIG II) Department, dated May 4, 1990. On August 10, 1998, an agreement was entered between the petitioner -mills and the second respondent, the Assistant Commissioner (CT), Chennai, on the basis of the eligibility certificate issued by the third respondent, the General Manager, District Industries Centre, Kancheepuram. Now the third respondent has issued the amendment proceedings dated September 15, 2000 to the eligibility certificate informing that, based on the internal audit the assessee is not entitled to the waiver of sales tax exceeding Rs. 1,02,04,495 and therefore amendment has been made to the eligibility certificate dated June 26, 1998 fixing the ceiling only up to Rs. 1,02,04,495. When the said order was received by the petitioner on September 22, 2000, he had availed the benefit under the waiver scheme to the tune of Rs. 1,18,08,729. In view of the amendment made to the eligibility certificate as said above, the first respondent has issued the impugned notice dated November 17, 2000 demanding the payment of Rs. 16,04,234 availed by the petitioner in excess. (i.e., Rs. 1,18,08,729 - -Rs. 1,02,04,495 = Rs. 16,04,234).
(3.) THE petitioners are challenging the notice and the order on the ground that when there is an agreement based on the eligibility certificate permitting the petitioners to avail the benefit of waiver of sales tax up to Rs. 1,35,30,000, the second respondent cannot unilaterally alter the terms of the agreement on the basis of the amendment made to the eligibility certificate which restricts the benefit of waiver of sales tax to Rs. 1,02,04,495, even without issuing any notice to the petitioners who are parties to the agreement, and on that basis, the first respondent who issued the notice demanding the payment of Rs. 16,04,234 has acted not only against the principles of natural justice but also against the principles of promissory estoppel and therefore, the notice issued by the first respondent is to be quashed.;