In Brief
The Supreme Court upheld the Union of India's withdrawal of excise duty exemptions for pan masala products (with and without tobacco) under the Central Excise Tariff Act, 1985. Despite earlier notifications granting exemptions for ten years, the Government issued notifications in 2007 removing these exemptions. The manufacturers invoked the doctrine of promissory estoppel, but the Court held that exemptions can be withdrawn when withdrawal is in public interest. Scientific evidence established that pan masala consumption is hazardous to health, particularly among teenagers, causing oral cancer. The Court ruled that public interest overrides individual claims and promissory estoppel cannot restrain governments from changing policies in public interest.
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