TaxTMI 
TaxTMI 
1986 (2) TMI 323
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....all the petitioners is of similar nature and they raise similar questions of law. In these circumstances, with the consent of the parties, the writ applications were heard together and are disposed of by this common judgment. The Secretaries of the Department of Industries, the Department of Housing and Urban Development and the Department of Food and Civil Supplies representing the State Government have been impleaded as opposite parties in the writ applications. In addition, the Regional Manager, Food Corporation of India, the District Manager, Food Corporation of India, the Director of Industries, the Executive Officer of the concerned Municipality, the Managing Director of the State Civil Supplies Corporation and in some cases the Octroi Superintendent and the Chairman of the Municipality concerned have also been impleaded as opposite parties. 3.. The gist of the case of the petitioners is that the State Government in the Industries Department announced its industrial policy effective from the 1st April, 1977 up to March, 1979, by resolution dated 1st April, 1977. In the said resolution the State Government, in order to attract entrepreneurs to set up new industrial units....
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....ict Industries Centre, arranged funds from banks and other financial institutions on payment of heavy interest, constructed the mill premises, installed machineries and went into production within the period the aforesaid policy was in vogue. The dates of commencement of production of their units were duly intimated to the authorities. The petitioners submit that they hopefully expected that the State Government would abide by its promise granting exemption from payment of octroi duty on the machineries and raw materials brought by them and also the concession relating to sales tax as indicated in its Policy Resolution referred to above. But the authorities of the concerned municipalities paid no heed to the decision of the State Government enumerated in the aforesaid Policy Resolution and demanded octroi duty from the petitioners. Similar was the conduct of the some of the assessing authorities under the Sales Tax Act. In the result, the petitioners have been put to heavy financial loss and their hopes, that the nascent industrial units would be able to make good progress in view of the concessions granted by the State Government, have been shattered. The petitioners ....
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.... time and that the petitioners are not entitled to claim enforcement of the policy as it initially stood ignoring its subsequent revision. The opposite parties accept the position of octroi duty and sales tax were held out to the entrepreneurs in the Industrial Policy decision dated 1st of April, 1979, but subsequently, on further scrutiny, the State Government decided by its resolution dated 31st July, 1980, that the said exemptions shall not be admissible to certain classes of industrial units including flour mill. This decision was again revised by resolution dated 1st/4th October, 1982, of the Industries Department whereunder it was decided that various incentives announced in the Industrial Policy Resolution would be available to rice mills, flour mills and pulse mills, etc., established on medium scale and investment in fixed assets exceeding Rs. 20 lakhs. It is the contention of the opposite parties that such revision in the policy decision from time to time were within the competence of the State Government and that the petitioners are not entitled to enjoy the facilities in the nature of concession as matters of right. It is their further contention that since admittedl....
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....t where one party has, by his words or conduct, made to the other a clear and unequivocal promise which is intended to create legal relations or effect a legal relationship to arise in the future, knowing or intending that it would be acted upon by the other party to whom the promise is made and it is, in fact, so acted upon by the other party, the promise would be binding on the party making it, and he would not be entitled to go back upon it if it would be inequitable to allow him to do so having regard to the dealings which have taken place between the parties and this would be so irrespective of whether there is any pre-existing relationship between the parties. (b) The doctrine of promissory estoppel need not be inhibited by the same limitation as estoppel in the strict sense of the term. It is an equitable principle evolved by the courts for doing justice and there is no reason why it should be given only a limited application by way of defence. (c) What is necessary for the principle to apply to a given case is only that the promisee should have altered his position in reliance on the promise. (d) The doctrine of promissory estoppel is also applicable against Govern....
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....ithin the competence of the Municipal Council to impose the levy under section 131(1)(kk) of the Orissa Municipal Act. But such levy is subject to the concurrence of the State Government. Under section 131-A of the Act, the State Government is empowered to abolish any tax which in its opinion causes hardship to the residents of the locality of the municipality subject to the limitation that exercise of such power shall be in consultation with the Municipal Council. Under section 188-A of the Municipal Act, the State Government in consultation with the Municipal Council may exempt any class of goods or any new industry from payment of octroi imposed by the Municipal Council. From these provisions, it is clear that the Government had ample power to exempt new industries to be set up during the particular period from payment of octroi in respect of the plant and machineries brought by the entrepreneurs setting up such industries as well as raw materials used in such industries. It was for the State Government to proceed in accordance with the procedure laid down under the statute (Orissa Municipal Act, 1950) to give effect to its promise in this regard. As noticed earlier the exemptio....
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....aterials, market facilities for the goods to be produced, the cost involved in the project, infrastructure facilities for installation, finance, and the other incentives offered by the State Government, Central Government and other authorities for setting up such unit, etc. An entrepreneur, who being attracted by the tax holiday offered by the Government, takes steps to set up an industrial unit definitely alters his position in such a manner that in most of the cases, it is not possible for him to restore status quo ante in case the exemption is suddenly withdrawn by the State Government. The importance of a definite industrial policy to be implemented for a period of time by the State Government cannot be over emphasised. On it depends the industrial growth, the employment potential to be available to its citizens and ultimately the overall growth and development of the country. Therefore, it is all the more necessary that Government should carefully make up its mind to what length it would go to offer incentives to the entrepreneur intending to set up industries in the State and having taken such a decision should seriously and efficiently implement its promise. 9.. On the....