JUDGMENT

SEN, J.:- CIVIL APPEAL NO.951 OF 1976.

The appellants are manufacturers of edible oil and have their own solvent extraction plants at Junagadh. The case of the appellants is that on or about September 9, 1969, a press note was issued by the State Government that New Industries will be granted exemption from Sales-tax for a period of five years from the date of commencement of production. The then Chief Minister as well as the Finance Minister of the State Government of Gujarat also made statements on March 3, 1970 on the floor of the Legislative Assembly that New Industries will be granted exemption from sales tax for a period of five years. The press note has not been annexed to the petition. Copies of the alleged statements made by the Chief Minister and the Finance Minister in the Legislative Assembly have also not been produced in Court.

2. However, a copy of the Notification dated April 29, 1970, issued under S.49(2) of the Gujarat Sales Tax Act, 1969, has been included in the paper-book. This notification contains a recital that the Government of Gujarat is satisfied that circumstances exist which render it necessary to take immediate action to amend the Gujarat Sales Tax Rules, 1970 and to dispense with the previous publication thereof. This notification does not make any reference to any previous press note or assurance given by anybody on behalf of the Government. It merely provides that in exercise of the powers conferred by S.86 of the Gujarat Sales Tax Act, 1969, the rules were being framed to amend the Gujarat Sales Tax Rules, 1970. Rule 42A was introduced in the Gujarat Sales Tax Rules, 1970, whereby on fulfilment of certain conditions, a New Industry was granted drawback, set off or refund of the whole or any part of the tax in respect of the purchase of raw materials, processing materials and machinery or packing materials used in manufacture of goods for sale. Certain conditions were laid down which had to be fulfilled before a new industry could avail of this benefit of the amended Rule 42A. New Industry was defined to mean and include an industry which has been commissioned at any time during the period from 1st April, 1970 to 31st March, 1975. One of the conditions laid down in the notification was that the assessee had to obtain an eligibility certificate from the Commissioner of Industries, Gujarat State, to the effect that the new industry had been commissioned in an area beyond 24 kilometers from the municipal limits of cities of Ahmedabad and Baroda and 16 kilometers from the municipal limits of Surat, Bhavnagar, Rajkot and Jamnagar. A new industry would enjoy the benefit of this notification for a period of five years from the date of commissioning of the industry as stated in the eligibility certificate.

3. On 11th November, 1970, a further notification was issued amending the earlier notification dated 29th April, 1970. It was specifically provided that New Industry will not include industries engaged in, inter alia :-

(12) decoraticating expelling, crushing, roasting, paching, frying of oil seeds and colouring, decolouring, scenting of oil;

(13) solvent extraction of oil-seeds and oil-cakes.

4. The contention made on behalf of the appellants is that the solvent extraction plant at Junagadh was set up by the appellant on the strength of assurance made out by the Government in the press statement, the speeches made by the Chief Minister and the Finance Minister on the floor of the Legislative Assembly, and also the notification issued on 11-11-1970. The appellant would not have set up this industry at Junagadh but for the aforesaid assurances given by the Government. It is not open to the Government now to withdraw the benefits of this Notification by a subsequent Notification issued on 17-7-1971. Since the appellant had changed his position to his detriment on the strength of the earlier assurance held out by the Government, the appellant is entitled to continue to enjoy the benefits given by Not