AMRIT BANASPATI CO. LTD. vs STATE OF PUNJAB

The Supreme Court ruled that while promissory estoppel can create expectations, it cannot be enforced against statutory provisions or public policy, as established under Article 265 of the Constitution of India. The Court held that the promise of sales tax refund made by the Punjab Government was void under Section 23 of the Indian Contract Act, as it contravened public policy. Consequently, the Division Bench's decision to deny the refund was upheld, affirming that no legal right was created by the government's assurances due to the change in policy prior to the appellant's claim.