In Brief
Maharashtra had granted electricity duty exemptions to industries operating captive power plants. Industries made substantial investments relying on these exemptions. The State later withdrew the exemptions citing fiscal constraints. Industries challenged this, and the High Court struck down the withdrawal as arbitrary and discriminatory, citing promissory estoppel and legitimate expectation. The Supreme Court reversed the High Court's judgment, holding that exemptions are revocable policy concessions, not vested rights, and can be withdrawn in public interest. However, to ensure fairness, the Court imposed a one-year transitional period before the withdrawal would take effect, protecting industries from sudden hardship while upholding the State's fiscal sovereignty.
The lawyer headnote and full judgment text are available to registered users.