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TMI Blog1987 (9) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... m the District Industries Centre, Mayurbhanj, on 28th November, 1979 (annexure-3). The petitioners' firm was granted a permanent registration certificate as a small-scale industrial unit by the Director of Industries, Orissa, on 10th April, 1980 vide annexure-4. The industrial unit was granted a production certificate (annexure-5) certifying that it started production on 19th March, 1980. The certificate of registration granted under section 9 of the Orissa Sales Tax Act was issued with effect from 25th September, 1980 and has been thereafter renewed from time to time as would be evident from annexure-7 series. Clause 8 of the Industrial Policy Resolution effective for the period 1979-83 provides that village cottage and tiny industries c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le or purchase of any goods or class of goods and likewise withdraw any such exemption. Pursuant to the said powers the State Government in Finance Department have issued notifications providing for exemption of tax and amending the said provision from time to time. In the notification dated 11th November, 1969 the raw materials, i.e., goods which directly go into the composition of the finished products, when sold to a registered dealer who is a manufacturer inside the State and who has started production after the 1st April, 1969 were exempted from tax for a period of five years from the date from which such registered dealer has started production, provided that he or his authorised agent furnishes a true declaration in form D which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Counsel appearing for the Sales Tax Officer (opposite party No. 1) in answer to the claim in the writ application submitted that the industrial policy in annexure-2 is ineffective and unenforceable as there has been no corresponding notification under section 6 of the Orissa Sales Tax Act. 5.. Learned counsel appearing for the petitioners urged that irrespective of the restrictions and limitations in the earlier notification dated 9th September, 1977 the petitioners are entitled to the tax exemption by virtue of clause 8 of the latter Industrial Policy which would be effective for the period 1979-83 and in that view of the matter, the petitioners are not interested in the relief prayed for declaring a portion of the notification of 1977 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce may be made to the decision reported in AIR 1972 SC 1311 (Turner Morrison and Co. Ltd. v. Hungerford Investment Trust Ltd.) and [1979] 44 STC 42 (SC); AIR 1979 SC 621 (Motilal Padampat Sugar Mills Co. Ltd. v. State of Uttar Pradesh). In the decision reported in [1979] 44 STC 42 (SC); AIR 1979 SC 621 (Motilal Padampat Sugar Mills Co. Ltd. v. State of Uttar Pradesh) their Lordships held that promissory estoppel is a principle evolved by equity to avoid injustice. True principle of promissory estoppel seems to be that where one party has by his words or conduct made to the other a clear and unequivocal promise which is intended to create legal relations or effect a legal relationship to arise in future, knowing or intending that it would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India v. India Tobacco Co. Ltd.) and (3) (Union of India v. Vazir Sultan Tobacco Co. Ltd.) where their Lordships observed that the doctrine of promissory estoppel is applicable against the Government in the exercise of its governmental, public or executive functions and the doctrine of executive necessity or freedom of future executive action cannot be invoked to defeat the applicability of the doctrine of promissory estoppel. This Court in the case of Sri Jagannath Roller Flour Mills v. State of Orissa [1987] 65 STC 384, considered the application of the doctrine of promissory estoppel and held that it is applicable against the Government. The tax exemption announced in the Industrial Policy Resolution dated 18th July, 1979 operating duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court reported in [1962] 13 STC 180; AIR 1962 SC 745 (Mathra Parshad v. State of Punjab) and the other decisions which followed the same. Their Lordships in the said case were concerned with a press note of the Government dated 2nd August, 1954 exempting sales tax for the current financial year in respect of manufacture of tobacco which fall under the Punjab Tobacco Vend Fees Act. In that connection their Lordships held that there can be no estoppel against a statute. If the law requires that a certain tax be collected, it cannot be given up, and any assurance that it would not be collected, would not bind the State Government whenever it chose to collect it. The facts of the said case are quite distinguishable from the facts of the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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