In Brief
The Union of India challenged a High Court order granting an industrial unit in Meghalaya excise duty exemption from the date of commercial production (14 July 1999), even though the exemption notification was extended to Meghalaya only in 2000. The Supreme Court held that Promissory Estoppel cannot be applied to override statutory exemptions. Although the Government had promised exemption via a 1997 Office Memorandum, the promise was fully implemented through the 2000 notification. Since the unit received the promised 10-year exemption benefit and suffered no prejudice from the later start date, the Court rejected retrospective application of the exemption and disposed of the appeal with appropriate declaratory relief."
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