TaxTMI 
TaxTMI 
2014 (2) TMI 1148
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....tection and encouragement of industry within the State on October 27, 1990. This scheme was applicable to all new industrial units established after April 1, 1990 and those existing units in which substantial expansion was done after April 1, 1990. In terms of this policy sales tax exemption was granted to eligible units and this exemption was granted for a period of five years with effect from April 1, 1990 up to March 31, 1995. The units of both the petitioners were established prior to March 31, 1995 and the promise held out to them was that they would be eligible for sales tax exemption up to March 31, 1995. In the year 1995, the State of Tripura adopted another scheme known as the Tripura Incentive Scheme, 1995. This was a much more....
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.... period of five years and these five years were to be calculated from the date of first production. The scheme of 1995 was later replaced by a Scheme of 2002 and as per this scheme, the sales tax exemption was withdrawn and it was replaced by a scheme whereby the industry would pay the sales tax but could claim refund of sales tax on fulfilling certain conditions. In the present case, the two petitioners came into commercial production on January 21, 2000 in W. P.(C) No. 371 of 2002 and on July 28, 1999 in W.P. (C) No. 372 of 2002. The petitioners claim that they are exempted to sales tax for five years from the date when they started commercial production. The stand of the State is that this is not a case of promissory estoppel and that....
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....t is a privilege granted to the exemptee and such privilege is not available to others. It is an exception from the general tax law. An exemption or privilege of this nature granted under a fiscal/taxing statute is a concession granted by the State Government and the beneficiaries of such concessions are therefore not required to pay the tax which they otherwise would be liable to pay. The recipient of such a concession has no legally enforceable right against the Government except to enjoy the benefits of concession during the period it is granted. This right is a defeasible right and can be taken away by the very power under which the exemption was granted. In this behalf reference may be made to the judgments of the apex court in Shri Ba....
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....4] 3 RC 444; [2004] 7 SCC 673 held as follows (page 382 in 145 STC): "34. The said decision itself is an authority for the proposition that what is granted can be withdrawn by the Government except in the case where the doctrine of promissory estoppel applies. The said decision is also an authority for the proposition that the promissory estoppel operates on equity and public interest." It is thus clear that any statutory exemption granted by the State can be withdrawn and the only exception is where the doctrine of promissory estoppel applies. Even the right available under the doctrine of promissory estoppel is not an indefeasible right and both equity and public interest have to be taken into consideration. We are not going into th....