Withdrawal of fiscal exemption upheld where public interest justified change and no clear promise of continuance existed.

An exemption granted under delegated fiscal power may be withdrawn or modified by the same authority in public interest, including for revenue concerns, proliferation of small-scale units, and the hazardous nature of the commodity. A uniform withdrawal applying to all manufacturers of the same product does not amount to hostile discrimination, and promissory estoppel will not apply unless there was a clear representation that the concession would continue for a fixed period. On that basis, the challenge to the amending notification withdrawing the small-scale exemption for potassium chlorate failed.

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Issues: Whether the amending notification withdrawing the exemption earlier granted to Potassium Chlorate under the small-scale exemption scheme was arbitrary, discriminatory, or violative of promissory estoppel, and whether the Government lacked power to rescind the earlier exemption notification.

Analysis: The exemption under the earlier notification was issued in exercise of delegated power under the excise law, and the same authority was competent to modify or withdraw it. The withdrawal was justified on the ground of proliferation of small-scale units manufacturing Potassium Chlorate, revenue considerations, and the hazardous nature of the commodity. The change applied uniformly to all manufacturers of the same item, so no hostile discrimination was shown. As no representation was made that the exemption would continue for a fixed period, the doctrine of promissory estoppel could not compel the Government to retain the concession.

Conclusion: The withdrawal notification was held valid, and the challenge based on arbitrariness, discrimination, and promissory estoppel failed.

Ratio Decidendi: An exemption granted under delegated fiscal power may be withdrawn or modified in public interest, and absent a clear promise of continuance, promissory estoppel cannot prevent such withdrawal.

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