AUGUSTAN TEXTILE COLOURS LIMITED (NOW AUGUSTAN TEXTILE COLOURS PRIVATE LIMITED) vs DIRECTOR OF INDUSTRIES

The Supreme Court addressed the issue of whether a tax exemption granted to a sick industrial unit under the Sick Industrial Companies Act, 1985 could be revoked by a subsequent government order. The court held that the tax exemption was a crucial incentive for the revival of the unit and could not be withdrawn arbitrarily. Consequently, the court ruled in favor of the appellant, affirming the validity of the initial government communication granting the exemption.