TaxTMI 
TaxTMI 
2010 (11) TMI 544
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....which reads as hereunder: "5A. Power to grant exemption from duty of excise. - (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be specified in the notification, excisable goods of any specified description from the whole or any part of the duty of excise leviable thereon: Provided that, unless specifically provided in such notification, no exemption therein shall apply to excisable goods which are produced or manufactured - (i) in a free trade zone or a special economic zone and brought to any other place in India; or (ii) by a hundred per cent, export-oriented undertaking and brought to any other place in India. Explanation : In this proviso, "free trade zone", "special economic zone" and "hundred per cent export-oriented undertaking" shall have the same meanings as in Explanation 2 to sub-section (1) of section 3. (1A) For the removal of doubts, it is hereby declared that where an exemption under sub-section (1) in respect of any....
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....seded under the provisions of this section. (5) Every notification issued under sub-section (1) [or sub-section (2A) shall, - (a) unless otherwise provided, come into force on the date of its issue by the Central Government for publication in the Official Gazette; (b) also be published and offered for sale on the date of its issue by the Directorate of Publicity and Public Relations, Customs and Central Excise, New Delhi, under the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963). (6) Notwithstanding anything contained in sub-section (5), where a notification comes into force on a date later than the date of its issue, the same shall be published and offered for sale by the said Directorate of Publicity and Public Relations on a date on or before the date on which the said notification comes into force." [Emphasis supplied] 2.1 In view of the core issue raised in the above batch of writ petitions, suffice it to consider the submissions made by both the sides, namely, the petitioners/assessees and the respondents/revenue on the question of law, referred to above, instead of referring ....
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.... Assistant Commissioner of Central Excise, as the case may be, by the 7th day of the next month in which the duty has been paid (b) The Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, shall, after such verification, as may be deemed necessary, refund the amount of duty paid, other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2002, during the month under consideration to the manufacturer by the 15th day of the next month: Provided that in cases where the exemption contained in this notification is not applicable to some of the goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of goods cleared under this notification. (c) If there is likely to be any delay in the verification, the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, shall refund the amount on provisional basis by the 15th day of the next month to the month under c....
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....the 7th day of the next month to the month under consideration. (e) the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, shall, after such verification, as may be deemed necessary, determine the amount correctly refundable to the manufacturer and intimate the same to the manufacturer by the 15th day of the next month to the month under consideration. In case the credit taken by the manufacturer is in excess of the amount determined, the manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from the said account current maintained by him. In case, the credit taken by the manufacturer is less than the amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount. (f) in case the manufacturer fails to comply with the provisions of clauses (a) to (e), he shall forfeit the option, to take credit of the amount of duty during the month under consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his account current on his own, as provided for in clauses (a) a....
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....a package of fiscal incentives and other concessions for the North East Region namely the 'North East Industrial and Investment Promotion Policy (NEIIPP), 2007', effective from 1.4.2007, which, inter alia, envisages the following : (i) Coverage: The North East Industrial Policy (NEIP), 1997 announced on 24.12.1997 covered the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. Under NEIIPP, 2007, Sikkim will also be included. Consequently, the 'New Industrial Policy and other concessions for the State of Sikkim' announced vide O.M. No. 14(2)/2002-SPS dated 23.12.2002 and the Schemes thereunder i.e. Central Capital Investment Subsidy Scheme, 2002, Central Interest Subsidy Scheme, 2002 and Central Comprehensive Insurance Scheme, 2002, notified vide Notifications No. F.No. 14(2)/2002-SPS dated the 24.12.2002 will be discontinued from 1.4.2007. (ii) Duration: All new units as well as existing units which go in for substantial expansion, unless otherwise specified and which commence commercial production within the 10 year period f....
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....e Chaired by Secretary, Department of Industrial Policy & Promotion with Secretaries of Department of Development of North Eastern Region (DONER), Expenditure, Representative of Planning Commission and Secretary of the concerned Ministries of the Government of India dealing with the subject matter of that industry as its members as also the concerned Chief Secretary/Secretary (Industry) of the North Eastern State where the claiming unit is to be located. Proposals which are eligible for a subsidy higher than Rs. 30 crores, will be placed by Department of Industrial Policy and Promotion before the Union Cabinet for its consideration and approval. (viii)Interest Subsidy: Interest Subsidy will be made available @ 3% on working capital loan under NEIIPP, 2007 as was available under NEIP, 1997. (ix) Comprehensive Insurance: New industrial units as well as the existing units on their substantial expansion will be eligible for reimbursement of 100% insurance premium. (x) Negative List: &....
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.... Power Generating plants will continue to get incentives as governed by the provisions of section 81A of the Income-tax Act. In addition, power generating plants up to 10 MW based on both conventional and non-conventional sources will also be eligible for capital investment subsidy, interest subsidy and comprehensive insurance as applicable under NEIIPP, 2007. (xii) Establishment of a monitoring mechanism for implementation of the NEIIPP, 2007: In order to establish a monitoring mechanism for implementation of NEIIPP, 2007, a 'High Level Committee'/an 'Advisory Committee' under the Chairmanship of Secretary, Department of Industrial Policy and Promotion and comprising Secretaries of the Ministries/Departments of Revenue, Department of Development of North Eastern Region (DONER), Banking and Insurance, Representative of Planning Commission, CMD, NEDFi as well as major stakeholders including the industry associations of the North Eastern region would be constituted. In addition, an 'Oversight Committee' will be constituted under the Chairmanship of the Union Commerce and Industry Minister with Industry Ministers of NE State....
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....in lieu of the expressed words used in the proviso, no exemption therein shall apply to excisable goods which are produced or manufactured - (i) in a free trade zone or a special economic zone and brought to any other place in India; or (ii) by a hundred per cent, export-oriented undertaking and brought to any other place in India. Explanation : In this proviso, "free trade zone", "special economic zone" and "hundred per cent export-oriented undertaking" shall have the same meanings as in Explanation 2 to sub-section (1) of section 3. 3.2. Further, statutory clarification has been made in sub-section (1A) of section 5A of the Act, declaring that where an exemption under sub-section (1A) of section 5A of the Act in respect of any excisable goods from the whole of the duty of excise leviable thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay the duty of excise on such goods. The said sub-section (1A) of section 5A of the Act is legislatively intended for the removal of doubts. It is also relevant to know that sub-section (2) of section 5A of the Act empowers the Central Government if satisfied that it is ne....
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....trepreneurs as under: No. 14(2)/2002-SPS Government of India, Ministry of Commerce and Industry, (Department of Industrial Policy and Promotion) New Delhi. Dated 23rd Dec. 2002. OFFICE MEMORANDUM Subject : New Industrial Policy and other concessions for the State of Sikkim. The Government of Sikkim has requested for a special package for development of industries in the State on the lines for the North East Industrial Policy notified by the Central Government vide Ministry of Industry's OM No. EA/1/2/96-IPD, dated 24th December 1997. Discussions on Strategy and Action Plan for Development of Industries and generation of employment in the State of Sikkim were held with the various related Ministries on the issues inter alia, infrastructure development, financial concessions and easy market access. 2. Keeping in view the fact that the State of Sikkim lags behind in industrial development, a need has been felt for structured interventionist strategies to accelerate industrial development of the State and boost investor confidence. The new initiatives would provide the required incentives as well as an enabling environment for industrial development....
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....ructural support. 3.3. The above concessions/subsidies shall be available to all new units and to the existing industrial units on their substantial expansion as defined, in the industrial areas notified by the Central Government (Annexure-I) and Thrust Industries (Annexure-II) irrespective of location. 3.4. Ineligible Industries under the policy: Tobacco and tobacco products including cigarettes/cigars/gutka, etc., Aerated branded beverages, and Pollution causing paper and paper products. 3.5. Nodal Agency North Eastern Development Finance Corporation Limited (NEDFI) would be designated as the Nodal Agency for routing the subsidies/incentives under various schemes notified under this Policy. Explanation: (i) The eligible areas for above concessions and thrust industries are as identified in Annex-I & Annex- II respectively. (ii) The notification regarding definition of substantial expansion of the existing units shall be issued separately. 4. Government reserves the right to modify any part of the policy in public interest. 5. The Ministry of Finance, Department of Revenue, Department of Development of North Eastern Region, et....
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....sessees invested their money and started new units or expanded their existing units. 8.1 But, surprisingly, the respondents/revenue by notifications dated 27-3-2008 and 10-6-2008, substituted the paragraphs 2, 3 and 4 of the earlier notification dated 9-9-2003, which provide 100% income tax and excise duty exemption. As a result of such modification the said 100% exemption of income tax and excise duty was reduced. 8.2.1 The notifications dated 27.3.2008 and 10.6.2008 read as hereunder: "GOVERNMENT OF INDIA, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) New Delhi, the 27th March, 2008. NOTIFICATION No. 23/2008-Central Excise 8.2.2 G.S.R. (E).- In exercise of the powers conferred by sub section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Gove....
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....this notification, the exemption contained in this notification shall be subject to the condition that the manufacturer first utilizes whole of the CENVAT credit available to him on the last day of the month under consideration for payment of duty on goods cleared during such month and pays only the balance amount in cash. 2B The exemption contained in this notification shall be given effect to in the following manner, namely:- (a) the manufacturer shall submit a statement of the total duty paid and that paid by utilization of CENVAT credit, on each category of goods specified in the said Table and cleared under this notification, to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, by the 7th of the next month in which the duty has been paid; (b) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, after such verification as may be deemed necessary, shall refund the duty payable on value addition, computed in the manner as specified in paragraph 2 to the manufacturer by the 15th of the month following the one in which the statement as ....
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....ble to take credit of the balance amount; (f) in case the manufacturer fails to comply with the provisions of clauses (a) to (e), he shall forfeit the option, to take credit of the amount calculated in the manner specified in sub-paragraph 2 in his account current on his own, as provided for in clauses (a) to (c); (g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly refundable under clause (e) and not reversed by the manufacturer within the period specified therein, shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods shall be considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess credit. Explanation.-For the purposes of this paragraph, duty paid by utilisation of the amount credited in the account current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT Credit Rules, 2004. 3. (1) Notwithstanding anything contained in paragraph 2....
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....r the goods of description specified in column (3) of the said Table and falling in Chapter of the First Schedule of the Central Excise Tariff Act, 1985 (5 of 1986) as in corresponding entry in column (2) of the said Table, and on finalization of the special rate, necessary adjustments be made in the subsequent refunds admissible to the manufacturer in the month following the fixation of such special rate. (4) Where the Central Government considers it necessary so to do, it may- (a) revoke the special rate or amount of refund as determined under sub-paragraph (2) by the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, or (b) direct the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, to withdraw the rate so fixed. Explanation: For the purpose of this paragraph, the actual value addition in respect of said goods shall be calculated on the basis of the financial records of the preceding financial year, taking into account the following: (i) Sale value of the said goods excluding excise duty, Value Added Tax and other indirect ta....
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....l Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 71/2003-Central Excise, dated the 9th September, 2003 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 717(E), dated the 9th September, 2003 namely:- In the said notification,- (i) in paragraph 2,- (a) after the words, brackets and figure "corresponding entry in column (2) of the said Table,", the words, brackets and figure "when manufactured starting from inputs specified in the corresponding entry in column (5) of the said Table in the same factory," shall be inserted; (b) for the Table, the following Table shall be substituted, namely:- TABLE Sl. No. Chapter of the First Schedule Description of goods Rate Des....
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....ure of goods: Provided that the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, may, if he is satisfied that the manufacturer was prevented by sufficient cause from making the application within the aforesaid time, allow such manufacturer to make the application within a further period of thirty days: Provided further that the manufacturer supports his claim for a special rate with a certificate from his statutory Auditor containing a calculation of value addition in the case of goods for which a claim is made, based on the audited balance sheet of the unit for the preceding financial year: Provided also that a manufacturer that commences commercial production on or after the 1 day of April, 2008 may file an application in writing to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, for the fixation of a special rate not later than the 30 day of September of the financial year subsequent to the year in which it commences production. (1A) Nothing contained in sub-paragraph (1) shall apply to a unit manufacturing goods falling under Serial No. 12, 13, 14 or 15 of ....
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....h 3. (2) The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall refund the differential amount, if any, to the manufacturer not later than the 15th day of May in the subsequent financial year." [F. No. 334/1/2008-TRU] (Unmesh Wagh) Under Secretary to the Government of India. Note:- The principal notification No. 71/2003-Central Excise, dated the 9th September, 2003 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 717(E), dated the 9th September, 2003 and was last amended vide notification no 23/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 228(E), dated the 27th March, 2008." 8.3 Hence, the petitioners/assessees have challenged the said notifications dated 27.3.2008 and 10.6.2008 in the above batch of writ petitions. 9. Heard Mr. A. K. Upapdhyaya, learned Senior Counsel, Mr. Paresh M. Dave and Mr. Sudesh Joshi, learned Counsel appearing for the petitioners/assessees and Mr. A. Moulik, learned Senior Counsel appearing for the respondents/revenue. 10. On behalf of the petitioners/assesseees, it is contended that the imp....
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....ry. (iii) Over valuation of goods resulting in availment of excess of credit by buyer. (iv) Goods are supplied by manufacturers, importers to these units without issuance of sales invoice and these are backed by bogus sale invoices issued by traders who do not undertake actual supply of goods. The actual supplier of these goods issue bogus duty paid invoices to other manufacturers who take credit based on such invoices without receipt of goods." 12. I have given careful consideration to all the submissions made on behalf of the petitioners/assessees and the respondents/revenue. 13. In the light of the above rival contentions, the issue that arises for consideration in the above batch of writ petitions, as stated earlier, reads as hereunder: Whether the respondent-State (herein called 'the Revenue') is justified by issuing Notification No. 23/2008-Central Excise dated 27.3.2008 and Notification No. 37/2008-Central Excise dated 10.6.2008 in withdrawing the exemption granted in the payment of duty for utilization towards the CENVAT credit/cash conferred upon the petitioners/assessees by Notification No. 71/2003-Centrtal Excise dated 9.9.2003, namely, G....
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....o harmonise different provisions in the same Act and prefer an interpretation which would lead to a harmonise construction rather than to lead to inconsistency. The cardinal principle is that the statute should be interpreted in such a way as to avoid absurdity and to have harmonious effect. 10.3. The Court must construe the relevant provisions to make it workable, unless it is impossible to do so, rather than make it meaningless. 10.4. An attempt must always be made to reconcile the relevant provisions as to advance the remedy by the statute, but not to deny the remedy provided under the statute, otherwise, the very purpose or the intention of the statutory provision would manifestly be defeated." 15. It is also a well-settled principle in law that the Court cannot read anything into a statutory provision or a stipulated condition which is plain and unambiguous. A statue is an edict of the Legislature. The language employed in a statute is the emanative factor of legislative intent. The object of interpreting a statute is to ascertain the intention of the Legislature enacting it. The intention of the Legislature is primarily to be gathered from the language used, which me....
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....he manner which is not known to law. 18.1 Then, the next question arises, whether the Government is empowered, invoking the right to reserve, to modify the provisions under notification dated 9.9.2003 and Office Memorandum dated 1.4.2007 as contended by Mr. A. Moulik, learned Senior Counsel appearing for the respondents/ revenue. 18.2 There is no doubt that the exemption of duty was provided to the petitioners/assessees by the notification dated 9.9.2003 pursuant to the policy, the IPR, of the respective Governments in order to achieve, as per the policy decision of the Government, new industrial policy and for the economic development of the country, invoking the power conferred under Articles 73 and 162 of the Constitution of India and pursuant to which they exercised statutory powers conferred under section 5A of the Act, in the public interest. 18.3 Once it is established that the respective Governments are giving the impugned duty exemption in public interest, the same cannot, at any stretch, be withdrawn unless there is a larger public interest involved. Such an attempt to withdraw the exemption, relying on which, the petitioners have acted upon the New Industrial Po....
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....fter the 23rd day of December, 2002, but not later than the 31st day of March, 2007; (ii) industrial units existing before the 23rd day of December, 2002, but which have undertaken substantial expansion by way of increase in installed capacity by not less than twenty-five per cent on or after the 23rd day of December, 2002, but have commenced commercial production from such expanded capacity, not later than the 31st day of March, 2007. 19.2 Section 5A of the Act itself provides for vesting of powers in the Central Government to issue a notification to exempt from whole or any part of duty of excise leviable on specified excisable goods. Hence, the concept of the Central Government foregoing certain amount of revenue is inherent in the provision and the contention that a loss occurs to the Central Government by virtue of operation of an exemption notification and hence, the same is required to be modified, or varied or rescinded cannot be countenanced. 20. It is a settled law that an authority exercising delegated legislation cannot read in the provision granting powers of delegated legislation something more than what such provision in fact provides. In other w....
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....)/2007-DBA-II/NER) wherein it has specifically provided that Excise Duty Exemption will be continued as hereunder: - "100% Excise Duty exemption will be continued, on finished products made in the North Eastern Region, as was available under NEIP, 1997. However, in cases, where the CENVAT paid on the raw materials and intermediate products going into the production of finished products (other than the products which are otherwise exempt or subject to nit rate of duty) in higher than the excise duties payable on the finished products, ways and means refund such overflow of CENVAT credit will be separately notified by the Ministry of Finance." 23.2 The Office Memorandum dated 1.4.2007 also provides a clarification with reference to the Value Addition in order to ensure genuine industrial activities, which reads as hereunder: - "In order to ensure genuine industrial activities in the North Eastern Region, benefits under NEIIPP, 2007 will not be admissible to goods in respect of which only peripheral activities like preservation during storage, cleaning operations, packing, re-packing, labelling or relabelling, sorting, alteration of retail sale price etc. take place." 23.3....
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....conditions prescribed in the scheme, eligibility certificate and the consequential agreements, with a view to boost the industrialisation by (i) deregulating Indian Industry, (ii) allowing the industry freedom and flexibility in responding to market forces, and (iii) providing a policy regime that facilitates and fosters growth of Indian Industry. 16.4. The power to maintain economic unity includes the power to grant exemptions or to reduce the rate of interest or defer or waive the sales tax as a special case for achieving the industrial development and to provide certain tax incentives which is also intended to attain the economic equality in the growth and development. The economic development of the State to bring it into equality with all other States and thereby develop the economic unity of India is one of the major commitments or the goals of the constitutional aspirations of this land." ** ** ** "19.1 It is a settled law that fiscal laws must be strictly construed and the words must say what they mean and nothing should be presumed or implied. It is also a trite that the principle that fiscal statutes should be strictl....
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....les of interpretation and in the light of the objects expressed in the respective notifications, the Government undoubtedly, in public interest, exempted excise duty, by notification dated 9.9.2003 and Office Memorandum dated 1.4.2007 - (i) to improve productivity of the State; (ii) to encourage economy, sustainable growth in the productivity; (iii) to achieve the optimal utilization so that the economy, trade, commerce and the standard of living in the State of Sikkim would grow and improve in all spheres; (iv) the State would qualify to compete with all other States of Indian democracy and so that this country, in turn, would compete globally. 26.1 A very identical issue under section 5A of the Central Excise Act, 1944 also came for the consideration before the Gujarat High Court in Special Civil Application No. 6299 of 2008, Sal Steel Ltd. v. Union of India where a majority of 2 out of 3 Hon'ble Judges by their independent and separate Orders dated 28.10.2009 and 10.3.2010, held as hereunder: "22. The contention that the power to modify/vary/ revoke a notification already issued is inherent in the power under section 5....
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....rcentile figures of two incomparable regions would give a misleading picture. The entire exercise of issuing subsequent notifications on 27.3.2008 and 10.6.2008 is thus without any basis, i.e. the basis adopted has no nexus with the object, intent and purpose which formed the basis for issuing Original Notification in 2001. 23. Section 38A of the Act is in relation to effect of amendments, etc., of Rules, Notifications or Orders. The said provision reads as under: [38A. Effect of amendments, etc., of rules, notifications or orders. - Where any rule, notification or order made or issued under this Act or any notification or order issued under such rule, is amended, repealed, superseded or rescinded, then, unless a different intention appears, such amendment, repeal, supersession or rescinding shall not- (a) revive anything not in force or existing at the time at which the amendment, repeal, supersession or rescinding takes effect, or (b) affect the previous operation of any rule, notification or order so amended, repealed, superseded or rescinded or anything duly done or suffered thereunder; or (c) affect any right, privilege, obli....
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.... the Act is that even in a case where a Rule, Notification, etc. is amended, etc., unless the amending Rule, Notification, etc. specifically denotes a contrary intention, everything that has taken place under the Rule, Notification, etc. prior to amendment shall continue to its logical end. This provision is not only a saving provision, but is a provision which correspondingly obligates both the person who was a beneficiary under the existing Rule, Notification, etc. and the authority under the existing Rule, Notification, etc. to continue to comply with the requirements of the Rule, Notification, etc. as it existed even after amendment once the parties have duly done anything or suffered under the existing Rule, Notification, etc. An assessee, who is required to act in a particular manner as specified by the Rule, Notification, etc. as existing before the amendment, is obliged in law to act accordingly, and correspondingly the authority is equally obliged in law to act as if the amendment had not taken place, such act on part of the authority being not only in relation to collection of revenue and other attendant provisions like penalty, etc., but also in relation to the entitleme....
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....he concession. When public interest is pleaded the same cannot be general and vague for the purpose of either modifying or revoking an exemption already granted. Supervening public interest is always a good ground for modifying or withdrawing an exemption. But once again such supervening public interest has to be established by direct cogent evidence in this regard, and not on basis of general and vague apprehensions. 28. In a case where the State invited new industries by offering concessional power tariff and thereafter withdrew the same on the ground that there was power theft on a large scale the Apex Court in case of U.P. Power Corpn. Ltd. (supra), after detailed analysis of the law on the subject, struck down the action of the State by invoking principle of promissory estoppel and in the process stated: "20. In this 21st century, when there is global economy, the question of faith is very important. Government offers certain benefits to attract the entrepreneurs and the entrepreneurs act on those beneficial offers. Thereafter, the Government withdraws those benefits. This will seriously affect the credibility of the Government and would show the shortsightedness of the ....
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....el or otherwise the very public interest enshrined in the New Industrial Policy of the Central and the State Governments, exercising the powers under Articles 73 and 162 of the Constitution of India, of course without compromising the loss of revenue. Therefore, the revenue is always well within the power to deny the duty exemption in appropriate cases where the norms, terms and conditions required for such duty exemption cannot be satisfied. But, to deny the benefits statutorily conferred upon the petitioners/assessees in the public interest, pursuant to the New Industrial Policy of the Central and State Governments, reducing the percentage of such statutory concessions, suffers from elements of arbitrariness and unreasonableness, which, in turn, are relatively illogical and irrational. 29.1 It is true that tax and equity are strangers. Equity cannot be relied on even by the revenue to tax an amount which is not taxable under the statute, and therefore, tax cannot be levied on the basis of the equity. Nor tax can be evaded placing reliance on the equity. [Vide : Kabil Mohan v. CIT [1999] 1 SCC 430]. 29.2 As discussed in detail by the Full Bench of the Gujarat High Court in S....