Bihar Electricity Duty Act, 1948 – s.9 – Jharkhand Industrial Policy, 2012 – The Industrial Policy 2012 was notified by the State government on 16.06.2012 providing an exemption from payment of 50 per cent of the electricity duty for a period of five years – The policy envisaged that the industrial units will be entitled for reimbursement/payment of subsidy etc. under the different categories only from the next financial year of the date of production – It was also stipulated in the policy that notifications enforcing the terms of the industrial policy would be issued within a period of one month by the Departments of the State government – The Departments of the State government failed to comply with the one month time schedule – Eventually, the State government issued an exemption notification on 08.01.2015 but made it effective from the date on which it was issued – Writ petition by the respondent – Before the High Court, the respondent claimed that the clause in the notification making it prospective should be effaced since it was contrary to the representation that was held out by the Industrial Policy 2012 – Alternately, the respondent sought a direction that it would be entitled to an exemption from electricity duty for a period of five years from the date of the issuance of the notification – High Court held that there was no specific reason for delay and that ‘but for the lethargic approach of the state authorities’ the exemption should have been issued within a month of the issuance of the Industrial Policy 2012 – The High Court concluded that the notification dated 08.01.2015 issued by the Commercial Tax Department of the State government ought not to be construed with prospective effect and the clause making it prospective would have to be struck down – The notification was deemed to be in effect from the date of the Industrial Policy 2012 (1 April 2011) – The electricity duty deposited for FYs 2011-12, 2012-13 and 2013-14 was directed to be adjusted against the future liability of the respondent towards electricity duty – On appeal, held: The State government issued a statutory notification u/s. 9, but by doing so prospectively with effect from 08.01.2015 it negated the nature of the representation which was held out in the Industrial Policy 2012 – Absolutely no justification bearing on reasons of policy or public interest has been offered before the High Court or before the Supreme Court for the delay in issuing a notification – Since the State has offered no justification for the delay in issuance of the notification, or provided reasons for it being in public interest, such a course of action by the State is arbitrary and is violative of Art.14 – In the instant case, the respondent is entitled to a rebate/deduction from electricity duty – However, the respondent would not be entitled to a rebate/deduction for FY 2011- 12 – In terms of the Industrial Policy 2012, the entitlement ensues from the financial year following the commencement of production – The respondent commenced production on 17.08.2011 – Therefore, the order of the High Court for the FYs 2012-13 and 2013-14 is confirmed. Principles/Doctrines – Promissory estoppel – Origins and evolution – discussed. Principles/Doctrines – Promissory estoppel and legitimate expectation – Difference between – discussed.