M/S Dugar Tea Industries Pvt.Ltd vs State Of Assam & Ors

The Supreme Court held that the Assam Industries (Sales Tax Concession) Act, 1987 does not permit the denial of sales tax exemption to the appellant-Company, which was granted an eligibility certificate under the 1982 Incentive Scheme. The Court established that the issuance of the eligibility certificate created a legitimate expectation for the appellant to receive the benefits, and the denial of such benefits was deemed unfair and illegal. Consequently, the Court ruled in favor of the appellant, allowing the appeal and directing the respondent-State to grant the sales tax exemption as per the eligibility certificate.