Bannari Amman Sugars Ltd vs Commercial Tax Officer And Ors

The Supreme Court addressed the legality of the withdrawal of subsidy benefits under G.O.Ms No. 989 dated 1.9.1988 and the subsequent government letter dated 28.12.1988, which were challenged by the appellants on grounds of promissory estoppel and legitimate expectation. The Court held that the principles of natural justice were violated as the appellants were not given an opportunity to respond to materials presented in court, and that retrospective withdrawal of benefits without proper authentication under Article 166 of the Constitution was impermissible. The judgment of the Madras High Court was set aside, favoring the appellants' claims.