In Brief
The Supreme Court held that the Union of India could lawfully withdraw excise duty exemptions on pan masala and tobacco products, even though exemptions had been granted by earlier notifications and companies had invested relying on them. The Court rejected the doctrine of promissory estoppel as a defence against such withdrawal, establishing that public interest—particularly health concerns—overrides private commercial interests. Scientific evidence that these products cause oral cancer and widespread consumption among teenagers strengthened the finding that withdrawal served public interest. The Court emphasized that the power to grant exemptions inherently includes power to withdraw them, and that courts will not bind governments to fiscal policy decisions when health or public welfare requires change.", "summary_100": "The Supreme Court held that the Union of India could lawfully withdraw excise duty exemptions on pan masala and tobacco products despite companies having invested in reliance on earlier notifications. The doctrine of promissory estoppel cannot prevent such withdrawal when undertaken in public interest. The Court found that scientific evidence establishing these products as carcinogenic and dangerous to health, particularly for teenagers, demonstrated clear public interest justifying the withdrawal. The power to grant exemptions inherently includes power to modify or withdraw them; courts do not restrict government fiscal policy decisions made for public health or welfare. Public interest overrides private commercial loss."
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