Page 59 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] PRINCE SPINTEX PVT. LTD. v. UNION OF INDIA 273
tion was issued levying auxiliary duty @ 12½ per cent ad valorem. Barely ten
days after the rescindment of the earlier notification, the Central Govern-
ment issued another Notification No. 186-Cus., dated 9-9-1980 once again
exempting wire rods and aluminium ingots from the whole of duty of cus-
toms. This notification was to remain operative till 31-3-1981 and it has re-
mained in force right through. The grievance of the appellants is that the
withdrawal of the exemption notification on 29-8-1980 was not at all justi-
fied and support for this argument is sought from the fact that within 10
days of the withdrawal notification, the Government had itself once again
issued a notification on 9-9-1980, reviving the exemption of customs duty.
Learned Counsel submitted that during the period of 10 days, the importers
whose goods arrived in India, were made liable to pay both the customs
duty as well as the auxiliary duty, while those whose goods arrived either
after 9-9-1980 or before 29-8-1980 were not required to pay the same.
27. Indeed, the submission on the fact situation is not controvertible but in
the absence of any material placed before the High Court or even in this
appeal to establish that the notification dated 29-8-1980 was issued for any
oblique or extraneous consideration and was not “in public interest”, it is
not possible to find fault with that notification for the reasons we have al-
ready given while dealing with the first batch of cases. The appellants, who
are in business, have to be prepared for tides in the business. In Pournami
Oil Mills, 1986 Supp SCC 728, it was the incentive to set up new industry in
the State with a view to boost the industrialisation that exemption had been
granted and it was in that fact situation that the doctrine of promissory es-
toppel was held available to the appellant therein. Again in Bakul Oil Indus-
tries, (1987) 1 SCC 31, it was the incentive to set up industries in a conform-
ing area that the exemption had been granted and the Court held that the
Government could withdraw an exemption granted by it earlier only if
such withdrawal could be made without offending the rule of promissory
estoppel and without depriving an industry entitled to claim exemption for
the entire specified period for which exemption had been promised to it at
the time of giving incentive. Both these cases therefore cannot advance the
case of the appellant and are distinguishable on facts because the exemp-
tion notification under Section 25 of the Act which was issued in this case
did not hold out any incentive for setting up of any industry to use PVC
resins and on the other hand had been issued in exercise of the statutory
powers, in public interest and subsequently withdrawn in exercise of the
same powers again in public interest. In our opinion, no justifiable preju-
dice was caused to the appellants in the absence of any unequivocal prom-
ise by the Government not to act and review its policy even if the necessity
warranted and the “public interest” so demanded. Thus, in the facts and
circumstances of these cases, the appellants cannot invoke the doctrine of
promissory estoppel to question the withdrawal notification issued under
Section 25 of the Act.”
4.6 It was submitted that under the EPCG Scheme no incentive is given
to the petitioner which it can hold against the Government and that the notifica-
tion granting exemption was issued in exercise of powers under Section 25 of the
Customs Act, therefore, the doctrine of promissory estoppel would not be at-
tracted in the present case.
4.7 Reliance was also placed upon the decision of the Supreme Court in
the case of Director General of Foreign Trade v. Kanak Exports and Another, (2016) 2
SCC 226 = 2015 (326) E.L.T. 26 (S.C.), wherein the Court held thus :-
“106. We may suitably refer to the judgment of this Court in Kasinka Trad-
ing v. Union of India, (1995) 1 SCC 274. In that case, the Government of India
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