Promissory estoppel applies to excise exemptions; withdrawal of a promised concession needs proved overriding public interest.

Promissory estoppel can apply to an excise exemption issued under delegated statutory power, even in the fiscal field, where the assessee altered its position in reliance on the notification. The Government may withdraw such a concession only on proved, overriding public-interest grounds supported by adequate material; a bare change of policy or general claim of inequity is insufficient. On the material placed, withdrawal of the time-bound exemption before 31 March 1979 was unjustified and unenforceable against the assessee, so the exemption had to continue until its original expiry date.

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Issues: Whether the doctrine of promissory estoppel applied to a notification granting excise exemption under Rule 8 of the Central Excise Rules and whether the exemption could be withdrawn before the stipulated date without adequate public-interest justification.

Analysis: The exemption notification was issued under delegated statutory power and was acted upon by the petitioners, who altered their position by filing declarations and expanding production. The Court held that a notification of this kind, though legislative in character, is not equivalent to primary legislation so as to exclude promissory estoppel altogether. The doctrine can operate against the Government in the fiscal field unless the Government discharges the burden of showing, on proper material, that overriding public interest requires withdrawal of the promise. A bare assertion of change in policy or a general claim that the concession was inequitable was held insufficient.

Conclusion: The withdrawal of the excise exemption before 31 March 1979 was not justified on the material placed and was held unenforceable against the petitioners. The issue was decided in favour of the assessee.

Final Conclusion: The petition succeeded and the time-bound exemption was required to continue until the original expiry date.

Ratio Decidendi: Promissory estoppel can apply to a fiscal exemption granted under delegated legislation, and the Government can resile from it only on proved, overriding public-interest grounds supported by adequate material.

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