Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Haryana General Sales Tax Rules Sales Tax |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Haryana General Sales Tax Act, 1973 (20 of 1973) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Sales Tax - Haryana General Sales Tax Rules, 1975 - r.28A - Haryana General Sales Tax Act, 1973 - Exemption on investment made for setting up Solvent Extraction plant. Withdrawal of, by putting the Solvent extraction plant in the negative list - Challenged - Promissory Estoppel. Applicability of - Held: The principles of promissory estoppel were not applicable as the decision to put the Solvent Extraction Plant in the negative list was taken in public interest since the industry is in the category of polluting industry - In cases where the Government on the basis of material available before it, bona fide, is satisfied that public interest would be served by granting, withdrawing, modifying or rescinding an exemption already granted, it should be allowed a free hand to do so - The Courts should not normally interfere with fiscal policy of the government more so when such decisions are taken in public interest and where no fraud nor lack of bona fide is alleged much less established - The right to exemption or concession is a right that can be taken away under the very power in exercise of which the exemption was granted - Furthermore, in the facts of the instant case, it cannot be said that the Respondent had altered its position relying on the promise inasmuch as even before steps were taken by the Respondent for laying the Solvent Extraction Plant, the appellant had made its intention clear through its notice dated 3.1.1996 that it was likely to amend the law/rules in respect whereof a draft was circulated for information of persons likely to be affected thereby so as to enable them to file objections and suggestions thereto - Amendments in the terms of the said draft rules were notified on 16-12-1996 substituting Schedule Ill appended to the Rules whereby and where under the solvent extraction plant was included therein. Though investment was made by the Respondent probably on the belief that it would entitled to the exemption, however, the said factor alone, in the absence of any specific confirmation cannot stop the State to amend the policy and withdraw the exemption if the same is deemed necessary and expedient in the Public Interest - Moreover, the said policy which was for the period of 1-4-1988 to 31-3-1997, was nearing its end - Administrative Law.Doctrines/Principles - Doctrine of Promissory estoppel - Applicability of -Held: The doctrine of Promissory Estoppel is an equitable remedy and has to be moulded depending on the facts of each case - No hard and fast rule for applying the doctrine of Promissory Estoppel but the doctrine has to do justice between the parties and ensure equity between the parties i.e. both the promissor and the promise.Interpretation of Statutes - Fiscal statute - Exemption - Nature of - Held: It is a concession granted by the State so that the beneficiaries of such concession are not required to pay the tax or the duty they are otherwise liable to pay under such statute - The beneficiary of a concession has no legally enforceable right against the government to grant a concession except to enjoy the benefits of the concession during the period of its grant. |
Judge | Hon'ble Mr. Justice Mukundakam Sharma |
Neutral Citation | 2011 INSC 145 |
Petitioner | State Of Haryana & Others |
Respondent | M/s. Mahabir Vegetable Oils Pvt. Ltd. |
SCR | [2011] 4 S.C.R. 944 |
Judgement Date | 2011-02-21 |
Case Number | 1977 |
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