BHARAT GENERAL & TEXTILE INDUSTRIESLTD. & ORS. vs STATE OF MAHARASHTRA & ORS.

The Supreme Court upheld the constitutional validity of Section 41 of the Bombay Sales Tax Act, affirming that it allows the State Government to grant exemptions from purchase and sales tax in public interest, without conferring arbitrary powers. The Court clarified that the exemption can be applied to new units in backward areas, distinguishing them from older units, and rejected the petitioners' claims of Promissory Estoppel regarding the withdrawal of tax exemptions under Section 41A. The Court concluded that the provisions serve a legitimate purpose and do not violate Articles 14, 19(1)(g), or 300A of the Constitution.