ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ASST.) DHARWAR vs DHARNENDRA TRADING COMPANY, ETC. ETC.

The Supreme Court upheld the applicability of the doctrine of Promissory Estoppel in the context of sales tax concessions granted by the Karnataka Government under Section 8A of the Karnataka Sales Tax Act, 1957. The Court dismissed the appeals filed by the Assistant Commissioner of Commercial Taxes, affirming that the mere allegation of misuse of concessions did not suffice to negate the promise made to entrepreneurs. The Court clarified that the concessions constituted a legal exemption from sales tax, and the absence of a specified power in the order did not invalidate it as the power could be traced to the relevant statute.