Industrial incentive policy promise cannot be narrowed by a later circular where tax reimbursement was expressly covered.

The Industrial Incentive Policy, 2006 was construed as a whole to extend subsidy or reimbursement on admitted tax paid under Bihar VAT, Bihar Entry Tax, and Central Sales Tax, because the policy text, clarification, and Annexure-III expressly included those components and excluded only penalty and the difference between assessed and accepted tax. The later circular could not narrow a notified policy that had already induced reliance, so the State remained bound by its clear promise. On that basis, the petitioner was entitled to the incentive for the relevant period and the contrary stand failed.

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Issues: Whether the Industrial Incentive Policy, 2006 entitled the petitioner to subsidy or reimbursement not only on admitted VAT but also on Entry Tax and Central Sales Tax paid by it, and whether the subsequent circular could curtail that entitlement.

Analysis: The Policy, read with its clarification and Annexure-III, expressly linked the incentive to admitted tax paid under Bihar VAT, Bihar Entry Tax and Central Sales Tax, and the passbook format also contemplated these components. The Policy had to be read as a whole, and the express exclusion was only in respect of penalty and the difference between assessed tax and accepted tax. On that construction, Entry Tax formed part of the admissible reimbursement under the Policy. The later circular changing the passbook format could not amend or whittle down a policy that had already been notified and acted upon, and the State was bound by its clear promise where the petitioner had altered its position in reliance on it.

Conclusion: The petitioner was entitled to subsidy or reimbursement under the Industrial Incentive Policy, 2006 on payments made towards admitted tax under the Bihar VAT Act, Bihar Entry Tax Act and the Central Sales Tax Act, and the contrary stand of the State failed.

Final Conclusion: The writ petition succeeded, and the State was directed to extend the incentive in accordance with the Policy for the relevant period.

Ratio Decidendi: A governmental incentive policy must be construed as a whole according to its clear language, and where the State has made an unequivocal promise that induces action by the beneficiary, it cannot later curtail that benefit by an inconsistent executive circular.

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