In Brief
The Supreme Court upheld the Union of India's right to withdraw excise duty exemptions granted to pan masala manufacturers despite earlier notifications promising such exemptions. The respondent industries, relying on exemption notifications, claimed the doctrine of promissory estoppel prevented withdrawal. The Court held that exemption notifications can be revoked if withdrawal serves the public interest. Scientific evidence showed pan masala (with and without tobacco) causes oral cancer, particularly among teenagers. The Court ruled that when public interest demands withdrawal, the State cannot be bound by its earlier policy decisions, and public interest overrides private loss. The appeals by the Union of India were allowed, and the High Court orders favoring the manufacturers were set aside.
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