Budgetary Support Scheme is not hit by Doctrine of Promissory Estopple and Legitimate Expectations

Last updated: 21 October 2024

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Quick Summary

The Jammu and Kashmir High Court has dismissed a petition challenging the replacement of the Budgetary Support Scheme (BSS) with the Turnover Incentive Scheme. The court found that the change was not irrational or arbitrary, and therefore, did not violate the doctrines of promissory estoppel or legitimate expectation. While the BSS provided reimbursement of IGST, the new scheme offers incentives based on turnover, ensuring continued support for industrial units.

Court :
Jammu and Kashmir High Court

Brief :
The Hon'ble Jammu and Kashmir High Court in the case of Sudhir Power Ltd. v. Union Territory of Jammu and Kashmir & Ors. [Writ Petition (Civil) No. 2784/2021 dated October 09, 2024] dismissed the writ petition challenging the government order replacing the Budgetary Support Scheme ("BSS") providing for reimbursement of Integrated Goods and Services Tax ("IGST") with Turnover Incentive Scheme, 2021 ("Turnover Incentive Scheme"). Both the schemes were for the benefit of the taxpayers, hence, cannot be said to be "irrational, unreasonable or arbitrary. Therefore, they are not hit by any of the Doctrines i.e. promissory estoppel and legitimate expectation. However, BSS will shall be reviewed by the Finance Department at the end of every financial year to find out its viability with reference to its continuance in the next financial year.

Citation :
Writ Petition (Civil) No. 2784/2021 dated October 09, 2024

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