Back
2025 Supreme(Gau) 187
IN THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH)
SOUMITRA SAIKIA, J
Shiva Coke Industries - Appellant
Versus
State Of Assam - Respondent
W.P(C) NO. 5917/2018, 1828/2019, 2138/2019, 6027/2018
Decided On : 12-02-2025
For the Petitioners:Mr. A. Saraf, Senior Advocate assisted by Mr. N.N. Dutta, Advocate
For the Respondents: Mr. S.C Keyal, Standing Counsel, CGST Mr. B. Chowdhury, Standing Counsel, SGST
IMPORTANT POINT
The rejection of eligibility certificates under the Industrial Policy was arbitrary, violating principles of promissory estoppel, as the petitioners had commenced production and invested substantially.
Headnote:
(A) Industrial Policy of Assam, 2008 - Eligibility certificates - Rejection of applications for eligibility certificates by the Commissioner of Industries based on the status of units as 'non-functioning' - Petitioners challenge rejection citing substantial investments and commencement of commercial production - Court finds that rejection is contrary to the doctrine of promissory estoppel and the spirit of the Industrial Policy, as the units had commenced production and were assessed accordingly. (Paras 1 - 94 )
(B) Taxation - Assessments made by the Finance Department during the pendency of eligibility claims - Court holds that assessments should not have proceeded without the eligibility certificates and that the petitioners were unjustly denied benefits due to administrative delays. (Paras 1 - 94 )
(C) Promissory Estoppel - The State cannot resile from its promises made under the Industrial Policy, especially when petitioners have altered their positions based on those promises. (Paras 1 - 94 )
Facts of the case:
The petitioners, various coke industries, challenged the rejection of their eligibility certificates under the Industrial Policy of Assam, 2008, claiming that their units were operational and had made substantial investments. The Commissioner of Industries rejected their applications on the grounds of non-functionality.
Findings of Court:
The court found that the rejection was arbitrary and contrary to established facts of commercial production and assessments made by the Finance Department.
Issues: The main issues were whether the rejection of eligibility certificates was justified and whether the assessments made during the pendency of these applications were valid.
Ratio Decidendi: The court ruled that the rejection of eligibility certificates was contrary to the principles of promissory estoppel and that the units were entitled to benefits under the Industrial Policy as they had commenced operations and made investments.
Result: Writ petitions allowed; orders rejecting eligibility certificates set aside and remanded for reconsideration.
JUDGMENT :
This bunch of writ petitions can be clubbed into two separate groups.
2. W.P(C) No. 5133/2018; W.P(C) No. 5139/2018; W.P.(C) No. 5141/2018; W.P.(C) No. 5143/2018 and W.P(C) No. 5136/2018 are the writ petitions filed by the petitioners aggrieved by the rejection of their respective eligibility certificates which they had applied for under the relevant provisions of the Industrial Policy of 2008. The petitioners are aggrieved that without due and proper appreciation of the facts and materials available before the respondent- Department of Industries, their claim for eligibility certificates were rejected. Consequently they being aggrieved, they have approached this Court praying for appropriate Writ Direction or Order for setting aside their respective rejection orders for grant of eligibility certificates as well as consequential order to the respondents to issue the eligibility certificates and/or otherwise consider them eligible for availing the benefits under the Industrial Policy of Assam 2008.
3. In so far as the writ petitions being W.P.(C) No. 1828/2019; W.P(C) No. 2138/2019; W.P(C) No. 5954/2018; W.P(C) No. 5937/2018; W.P.(C) No. 5957/2018; W.P.(C) No. 2111/2019; W.P.(C) No. 1843/2019; W.P(C) No. 2096/2019; W.P(C) No. 6027/2018; W.P(C) No. 5960/2018; W.P(C) No. 5917/2018; W.P(C) No. 1860/2019; W.P(C) NO. 5980/2018; W.P(C) No. 5932/2018 and W.P(C) No. 5931/2019 are concerned, the petitioners therein have assailed the assessments conducted by the department of Finance and Taxation, Government of Assam considering them as regular dealers who are not entitled to the benefits under the Industrial Policy of Assam, 2008 and overlooking the claims of those petitioners that their cases for grant of eligibility certificate was either pending before the appropriate department at the time the assessments were made or that the same has been rejected and which are being put to challenge by the petitioners.
4. The facts involved in both these bunches of cases giving rise to the present litigation are common and therefore all these writ petitions were heard and taken up together for disposal.
5. The brief description of the writ petitioners are enumerated as under:
| Case No. & Party Name | Brief Description |
| W.P(C) No. 5133/2018 (Sheo Shakti Coke Industries) | This writ petition has been filed challenging the order dated 05.05.2018 issued by the Commissioner of Industries & Commerce, Udyog Bhawan, Assam holding the industrial unit of the petitioner firm to be ineligible for grant of eligibility certificate under the Industrial Policy of Assam, 2008 as the said industrial unit was presently found to be “non-functioning” assigning the reason that the Government provides tax exemptions and other fiscal incentives to encourage industrial units for their contribution in economic development of the State in general and employment generation in particular and a non- functioning unit neither contributes in economic development nor in employment generation and as such the same is not entitled for grant of eligibility certificate. |
| W.P(C) No. 5139/2018 (Shiva Coke Industries) | This writ petition has been filed challenging the order dated 05.05.2018 issued by the Commissioner of Industries & Commerce, Udyog Bhawan, Assam holding the industrial unit of the petitioner firm to be ineligible for grant of eligibility certificate under the Industrial Policy of Assam, 2008 as the said industrial unit was presently found to be “non-functioning” assigning the reason that the Government provides tax exemptions and other fiscal incentives to encourage industrial units for their contribution in economic development of the State in general and employment generation in particular and a non- functioning unit neither contributes in economic development nor in employment generation and as such the same is not entitled |
