Law: Evidence Act, (1 of 1872)

Section: 115

(a) Evidence Act ( I of 1872)--S.115--Promissory estoppel against Government--Entrepreneurs starting new industries- -Incentive scheme giving sales tax concessions-¬Modification/withdrawal of, on ground of misuse of Scheme and undue advantage taken by some entrepreneurs--Relevant facts establishing such misuse not placed before Court by Government--Government cannot resile from the promise and withdraw the concessions. (b) Evidence Act (I of 1872)---- ---S.115--Ultra vires--Plea of, by province or its functionaries--Maintainability-¬Incentive scheme by Government giving concessions in sales tax to new entrepreneurs--Not open for Sales Tax Officers and the province itself to contend that the scheme itself was ultra vires statutory provisions. (c) Sales tax- --- Incentive Scheme for new entrepreneurs--Vires of--Benefit by way of refund of sales tax paid on purchase of raw material granted-Refund granted under the scheme is in effect in nature of exemption. (d) Evidence Act (I of 1872)-- ---S.115--Promissory estoppel--Doctrine of--Doctrine has to be regarded as good law. JUDGMENT M.H. KANIA, Z.--These appeals arise from the decision of a Division Bench of the High Court of Karnataka in Writ Appeals Nos.1101 to 1144 of 1979. It appears that the Government of Karnataka decided to adopt a policy to encourage rapid industrialisation. An Order No.CI58 FMI-69, dated 30th June, 1969 was issued which recited that the Government, namely, the Government of Karnataka was committed to a policy of rapid industrialisation and that, in pursuance thereof, the Government had on 30th November, 1966, issued directions indicating the incentives that would be 'given to entrepreneurs starting new industries in the Mysore State. The material part of the said order, for our purposes, runs thus: "Consequently, the Governor of Mysore is pleased to sanction the following incentives and concessions to the entrepreneurs for starting new industries in Mysore State: (1) Sales Tax--A cash refund will be allowed on all sales tax paid by a new industry on raw materials purchased by it for the first 5 (five) years from the date the industry goes into production, eligibility to the concessions being…

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