The principle of promissory estoppel cannot be invoked to compel the government to carry out a representation or promise which is contrary to law or which is outside their authority or power.

( 1 ) THIS writ application was moved by the petitioner for a declaration that Central Excise Notification No. 203/87, dated 9th September, 1987 issued in exercise of powers conferred by Rule 57a of the Central Excise Rules, 1944 whereby the Central Government made amendment in the notification of the Government of India and the Ministry of Finance (Department of Revenue) No. 177/86-Central Excise, dated 1st March, 1986 whereby the benefit of Modified Value Added Tax (referred to as MODVAT) system to aerated waters was withdrawn.

( 2 ) THE fact of this case in short is that the petitioners are manufacturers of aerated waters viz. 'gold Spot', 'limca', Thums Up', 'rim Zim' and 'bisleri Soda' which are manufactured in the factory of the petitioners at Calcutta. It is stated that the petitioner company is manufacturing aerated waters on the basis of raw materials supplied by M/s. Parle (Exports) Private Ltd.

( 3 ) AERATED waters, as excisable commodity was brought under Excise Duty with effect from 1st of March 1970 under Item No. 1-D in the First Schedule to the Central Excises and Salt Act, 1944. While the said levy was in force, the Central Government under the provisions of Rule 8 of the Central Excise Rules, 1944 (referred to as the said Rule) issued a Notification No. 201/79-C. E. , dated 4-6-1979 as amended from time to time, exempted all excisable goods on which the duty of excise is leviable and in the manufacture of which any goods falling under Item 68 of the First Schedule to the said Act, had been used as raw-materials or component parts from so much of duty of excise leviable thereon as was equivalent to the duty of excise already paid upon the said raw-materials are components upon the terms and conditions mentioned therein. On the basis of the said Notification No. 201/79-C. E. , dated 4-6-1979, the petitioner company was availing the benefit of the exemption as a manufacturer of Aerated waters in regard to the bottles and crowns as well as synthetic essence known as 'non-alcoholic Beverages' fee under Item 68 of the First Schedule to the said Act and accordingly the petitioner No. 1 availed of set-off under the said Notification No. 201/79-C. E. , dated 4-6-1979 in respect of the excise duty paid upon the synthetic essence used in the manufacture of aerated waters.

( 4 ) UNDER the Proforma Credit system as contained Rule 56a of the said Rules, as manufacturer was permitted to receive raw-materials or components parts on which excise duty had been paid in his factory for the manufacture of excisable goods or for the more convenient distribution of the finished product, and was allowed a credit of duty already paid on such raw materials of component parts as the case may be. On the basis of the aforesaid rule, the petitioner No. 1 as a manufacturer was taking credit of duty already paid upon his raw materials and components while discharging their duty liabilities upon the finished product. However, the scheme under the Rule 56a of the said Rules, was restricted only to such raw-materials or component parts which fell under the same tariff item as the finish excisable goods. Again the proforma credit scheme was only applicable to those products which had been specifically notified under Sub-rule (1) of Rule 56a of the said Rules.

( 5 ) WHILE the benefit of set-off procedure and/or proforma credit scheme as stated hereinbefore, was vogue, the provisions of the said Act was amended so as to delete the First Schedule thereto with effect from 28. 6. 1986 by the Notification dated 5. 12. 1986 and to make-all excisable goods subject to duty at the rate set forth in the Schedule to the Central Excise Tariff Act, 1985 (Act No. 5 of 1986 ). Under and in terms of Central Excise Tariff Act, 1985 ). Under and in terms of Central Excise Tariff Act, 1985 the goods produced by the petitioner No. 1 were being classifiable under Chapter No. 22 thereof as 'beverages, Vinegars and spirits'.

( 6 ) W