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A. N. SEN, P. N. BHAGWATI, R. S. PATHAK
Union Of India – Appellant
Versus
Godfrey Philips India LTD. : India Tobacco Company LTD. : Vazir Sultan Tobacco Company LTD. – Respondent
Promissory estoppel is a principle rooted in equity that prevents a party from going back on a clear and unequivocal promise or representation when another party has relied upon it to their detriment (!) . It functions primarily as a shield to uphold fairness, ensuring that promises made with the intention of being relied upon are honored, regardless of the presence of consideration or formal contractual obligations (!) . The doctrine applies to both private individuals and public authorities, including the government, provided that the promises are within their legal powers and made in good faith with the intention of reliance (!) . However, promissory estoppel cannot be invoked against the legislature in exercising its legislative functions, nor can it enforce promises that are contrary to law or outside the authority of the public body (!) . Its purpose is to prevent injustice by holding entities accountable for their representations, especially when citizens or other parties have relied upon them to their detriment, thereby promoting fairness and accountability in government and administrative actions (!) .
JUDGMENT
BHAGWATI, C.J.I. :— These appeals by special leave raise a number of questions relating to excise duty leviable on cigarettes manufactured by the respondents. Barring one, all the other questions are now settled as a result of the decision of this Court in Union of India v. Bombay Tyre International Ltd., (1984) 1 SCC 467 and all that is required is to direct the assessing authorities to assess the excise duty leviable on the respondents on die basis of the law laid down, in Bombay Tyre International case (supra). The only question which remains to be considered is in regard to cost of packing includible in the value of the cigarettes for the purpose of assessment to excise duty.
2. The respondents in these appeals are manufacturers of cigarettes. They manufacture cigarettes in their factories and the cigarettes so manufactured are packed initially in paper/card board packets of 10 and 20 and these packets are then packed together in paper/card board cartons / outers. These cartons / outers are then placed in corrugated fibre board containers and it is these corrugated fibre board containers filled with cartons / outers containing packets of cigarettes of 10 and 20 which ar
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