Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Doctrines/Principles Doctrine of legitimate expectation |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | West Bengal Sales Tax Act, 1994 (49 of 1994) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Doctrines/Principles – Doctrine of legitimate expectation –West Bengal Sales Tax Act, 1994 – ss.2(17), 17(3)(a)(xi), 39 – WestBengal Finance Act, 2001 – West Bengal Sales Tax Rules, 1995 –r.52 – Bengal Finance (Sales Tax) Act, 1941 – s.2(dd) – Whetherdespite s.2(17) of the 1994 Act which was amended w.e.f.01.08.2001, omi tting “tea blending” from the definition of“manufacture”, the appellants shall still be entitled to the exemptionfrom payment of sales tax – Held: Per M.R. Shah, J. Nobody canclaim the exemption as a matter of right – To grant/continue/withdraw the exemption is a policy decision – Unless withdrawal isfound to be so arbitrary, the Court would be reluctant to interfere –Prior to 2001, as per s.2(17), 1994 Act, the activity of “tea blending”was included in the definition of “manufacture” – Therefore, beingin the activity of “tea blending”, the appellants were entitled to theexemption from payment of sales tax as manufacturers – However,consequent to the amendment, when the activity of “tea blending”was excluded from the definition of “manufacture”, the appellantsceased to be the manufacturers and thus, on and from 01.08.2001,they were not entitled to the exemption – There cannot be anypromissory estoppel against the statute – This is not a case of “vestedright” but of “existing right”, which can be varied or modified and/or withdrawn – View taken by the Tribunal and the High Courtagreed with – Per Krishna Murari, J. [Dissenting (on theapplicability of the doctrine of legitimate expectation)] The taxholiday granted by way of an amendment to small scale industriesinvolved in the manufacture and blending of tea, created a legitimateexpectation in favour of the appellants – This legitimate expectationwas broken when a subsequent amendment was brought removing“blending of tea” from the definition of “manufacture” – To justifysuch a shift in policy, and snatch away the legitimate expectationcreated in favour of the appellants, the public authority must demonstrate the reasons for such a shift – However, no suchappropriate justification was provided – A mere claim of change ofpolicy not sufficient to discharge the burden of proof vested in thegovernment – Respondents to extend the benefits of the originalamendment to the appellants, till the expiry of such benefit as perthe original amendment – In view of divergence of opinion, matterto be placed before the Hon’ble the Chief Justice of India forappropriate orders – State Scheme of Incentives for Cottage andSmall-Scale Industries, 1993 – West Bengal Incentive Scheme, 1999. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2023 INSC 530 |
Petitioner | M/s. K.b. Tea Product Pvt. Ltd. & Anr. |
Respondent | Commercial Tax Officer, Siliguri & Ors. |
SCR | [2023] 8 S.C.R. 828 |
Judgement Date | 2023-05-12 |
Case Number | 2297 |
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