Central Goods And Services Tax Act, 2017: ss. 11 , 174(2)(c) – Repeal and saving – Tax exemption – Office Memorandum of 2003 provided 100 % exemption of excise duty for 10 years from the date of commencement of commercial production in the State of Uttrakhand and Himachal Pradesh to new industrial units and existing industrial units – Appellants availed the exemption for the said period whereafter the Goods and Service Tax regime came into existence and the benefit being enjoyed by the appellants was reduced to 58% through the Budgetary Support Policy – Writ petitions challenging the same, dismissed by the High Court – On appeal, held: Though the first part of clause (c) of sub-section (2) of s. 174 would protect any right, privilege, obligation, etc. under the amended Act or repealed Acts, the proviso thereto provides that any tax exemption granted as an incentive against investment shall not continue as a privilege if the said notification is rescinded on or after the appointed day – Benefit which was granted under the 2003 Notification stands rescinded in view of the notification issued under proviso to clause (c) of sub-section (2) of s. 174 – When the legislature exercises its powers for the public good, the earlier representation would not operate against the Government as equitable estoppels – There can be no promissory estoppel against the exercise of the legislative functions of the State – If the plea of appellants is accepted, it would amount to enforcing a representation made in the said O.M. and Notification of 2003 contrary to the legislative incorporation in the proviso to s. 174(2)(c) – Thus, the claim of the appellant on estoppel is rejected – However, the appellants permitted to make representations to the respective State Government and the GST Council. 

Doctrine of promissory estoppel – Applicability of, against the legislature in the exercise of its legislative functions – When a subsequent statute specifically providing for rescinding the benefits granted under an earlier statute, can the Union Government be compelled to stand by the representation made by it through the earlier notification – Explained and discussed.

Writ of Mandamus – Issuance of – When – Held: Writ of mandamus can be issued where the Authority has failed to exercise the discretion vested in it or has exercised such a discretion malafidely or on an irrelevant consideration – A writ of mandamus cannot be issued to the Central Government to exercise power under Section 11 of the CGST Act in a particular manner – This Court cannot interfere in policy matters of the Government unless such policy is found to be palpably arbitrary and irrational.