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M. S. RAMACHANDRA RAO, JYOTSNA REWAL DUA
Jaiprakash Associates Ltd. – Appellant
Versus
State of H. P. – Respondent
JUDGMENT :
JYOTSNA REWAL DUA, J.
1. All these petitions raise common questions of law and facts, hence are being taken up together for decision. For convenience, documents from CWP No. 9131 of 2013 are being referred to hereinafter.
The core question around which all these petitions are centered, is whether tax incentives granted to the petitioner-industrial units under specific Rules and statutory Notifications framed & issued pursuant to the State Industrial Policy, 2004, could be withdrawn during the currency of the exemption period promised under the Industrial Policy/ Rules/Notifications.
2. Brief reference to facts:
(i)(a) Clauses 8.1, 8.3 and 8.4 pertaining to ‘Package of Incentives, Concessions and Facili
The doctrine of promissory estoppel prevents the State from withdrawing tax exemptions promised under the Industrial Policy, 2004, even after the de-notification of backward areas.
The State is bound by its promises under the Industrial Policy, and failure to issue enabling notifications for incentives constitutes arbitrary action, invoking the doctrine of promissory estoppel.
(1) Estoppel – There cannot be any estoppel against Government in exercise of its sovereign, legislative and executive functions.(2) Court cannot interfere in policy matters of Government unless such....
Point of Law : Notification cannot be construed as having retrospective or retroactive effect to whittle down the accrued rights in favour of the Respondent units which were entitled to rebate.
The main legal point established in the judgment is the application of the principle of legitimate expectation, promissory estoppel, and Section 38A of the Central Excise Act, 1944 in protecting the ....
The doctrine of promissory estoppel cannot compel the government to act against statutory provisions governing entitlement to incentives.
Section 3(B)(b) of Act enables levy of electricity duty upon cancellation of exemption.
It is abundantly clear that an equitable rule by the rule of promissory estoppel cannot be invoked to repeal a statutory provision – which can indeed be termed mandatory.
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