STATE OF JAMMU AND KASHMIR vs M/S.TRIKUTA ROLLER FLOUR MILLS.P.LTD

The Supreme Court addressed the validity of G.O. No. 253-Ind/DIC of 1993, which restricted the refund of central sales tax (CST) for small scale industrial units, holding that the principle of promissory estoppel applies when a government policy creates a legitimate expectation. The Court found that the State's change in policy lacked a valid justification and that the respondents were entitled to the refund for five years from the date of production. The judgment emphasized that while executive policies can be modified, such changes must be reasonable and not arbitrary, particularly when they affect established rights under prior policies.