In Brief
A steel manufacturing company in Meghalaya sought central excise duty exemption from the date it commenced commercial production in 1999. The Government had promised exemption through an industrial policy memorandum but initially issued the exemption notification for Meghalaya only in 2000. The High Court had granted exemption from the production date using Promissory Estoppel. The Supreme Court reversed this, holding that Promissory Estoppel applies only when the Government refuses to implement its promise or withdraws it. Since the exemption was fully implemented (albeit from a later date), retrospective application was not permissible. The Court declared the law without ordering retrospective relief.
The lawyer headnote and full judgment text are available to registered users.