https://www.taxtmi.com/caselaws?id=784593 The dominant issues were whether the MM Plant qualified as a "new industrial unit" under the 1989 industrial policy, and whether the State could deny capital investment subsidy and DG set subsidy on the ground that the overall subsidy ceiling had been exhausted under earlier policies. The SC held that the MM Plant met the policy tests for a new unit (fixed capital investment after 01.12.1989) and the authorities gave no cogent basis to treat it as mere expansion; consequently, it had to be treated as a new unit. The SC further held that the "overall subsidy limit" applied to existing units seeking additional subsidy for expansion/modernisation/diversification, not to fresh subsidy for a new unit; accordingly, rejection on that basis was illegal. Based on clear representations and detrimental reliance, promissory estoppel operated against refusal to disburse the sanctioned subsidies; the HC judgment was set aside and the appeal allowed. en-us Tue, 06 Jan 2026 00:00:00 +0530 Wed, 07 Jan 2026 13:21:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784593 The dominant issues were whether the MM Plant qualified as a "new industrial unit" under the 1989 industrial policy, and whether the State could deny capital investment subsidy and DG set subsidy on the ground that the overall subsidy ceiling had been exhausted under earlier policies. The SC held that the MM Plant met the policy tests for a new unit (fixed capital investment after 01.12.1989) and the authorities gave no cogent basis to treat it as mere expansion; consequently, it had to be treated as a new unit. The SC further held that the "overall subsidy limit" applied to existing units seeking additional subsidy for expansion/modernisation/diversification, not to fresh subsidy for a new unit; accordingly, rejection on that basis was illegal. Based on clear representations and detrimental reliance, promissory estoppel operated against refusal to disburse the sanctioned subsidies; the HC judgment was set aside and the appeal allowed. Case-Laws Indian Laws Tue, 06 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784593