In Brief
Hero MotoCorp and Sun Pharma challenged the Union's decision to reduce their excise duty exemption from 100% to 58% after GST was introduced in 2017. Both companies had established industrial units in Himalayan States relying on a 2003 central government policy promising 10-year exemption. They invoked promissory estoppel. The Supreme Court dismissed the appeals, holding that the doctrine of promissory estoppel cannot override legislative enactment. The CGST Act of 2017 expressly rescinded earlier exemption notifications, and Parliament's later legislation supersedes prior executive representations. However, the Court acknowledged the companies' legitimate expectations and urged State Governments and the GST Council to consider compensating them from their devolved revenue share.
The lawyer headnote and full judgment text are available to registered users.