Promissory estoppel in tax exemption claims fails without a clear promise and proven detrimental reliance.

A claim of promissory estoppel failed because the industry could not show a clear government promise that the sales tax exemption would remain unchanged for five years, nor prove detrimental reliance on any such assurance. The exemption scheme under the Gujarat Sales Tax Act was treated as a fiscal measure linked to industrial policy, and the Court found the facts insufficient to establish that the appellants altered their position on the basis of a definite representation. As a result, withdrawal of the exemption benefit was not restrained, and the broader question whether promissory estoppel can operate against fiscal legislation was left undecided.

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Issues: Whether the appellants had established a case of promissory estoppel so as to prevent the State from withdrawing the sales tax exemption benefit granted to new industries by the later notification.

Analysis: The exemption scheme under the Gujarat Sales Tax Act, 1969 and the Rules framed thereunder was a fiscal measure linked to industrial policy. The earlier notification did not contain any definite assurance that the benefit would remain unaltered for five years regardless of future policy changes. On the facts, the appellants failed to show a clear promise by the Government, or that they had altered their position to their detriment in reliance on such promise. The commencement of production shortly after the notification, without supporting particulars as to the setting up of the industry, weakened the claim of reliance. In these circumstances, the Court found no factual basis for invoking promissory estoppel, and it found it unnecessary to decide the broader question of the doctrine's application in fiscal legislation.

Conclusion: The plea of promissory estoppel failed and the withdrawal of the exemption benefit was not interdicted.

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