In Brief
Eastern Bakeries, a food processing unit in West Bengal, sought tax remission under the West Bengal Incentive Scheme, 1999, which applied to agro-processing industries. The statutory rules implementing the scheme omitted food processing from the additional incentive period. The Supreme Court held that tax remission can only be granted through statutory exercise, not by policy statement alone. A mere policy statement cannot create enforceable rights without corresponding statutory amendment. The appellant did not plead promissory estoppel with proof of reliance and prejudice, so no relief was due. The appeal was dismissed, though the Court interdicted penalty, recognizing the appellant's bona fide doubt about its tax liability."
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