STATE OF JHARKHAND vs TATA STEEL LTD .

The Supreme Court ruled that the exemption granted under Section 23A of the Bihar Finance Act, 1981, for sales tax to Tata Steel Ltd. was valid despite the reorganization of Bihar into Jharkhand. The Court held that the exemption certificate issued by the Jharkhand government was in accordance with the earlier policy aimed at promoting industrial growth, and thus Tata Steel was entitled to the benefits promised under the policy. The judgment affirmed the continuity of the exemption despite the change in state boundaries, emphasizing the importance of investor confidence and policy stability.