JUDGMENT ~ A.M. Khanwilkar, J. - The seminal question involved in both these appeals is about the power of the State to rescind the notification providing for rebate in respect of tax payable under the Uttar Pradesh Trade Tax Act, 1948 (for short, "the 1948 Act") and thus withdrawing the facility even in respect of industrial units, which had commenced production and had complied with the conditions for grant of such rebate in terms of Notification dated 27th February, 1998. 2. Briefly stated, the appropriate authority, in exercise of power Under Section 5 of the 1948 Act issued notification dated 18th June, 1997, to declare the goods having fly ash contents of 10% or more by weight to be notified goods for the purpose of Section 5, and to grant a rebate of 25% in respect of the goods having fly ash contents between 10 to 30% by weight and a rebate of 50% in respect of the goods having fly ash contents exceeding 30% by weight on the tax levied under the Act in the districts notified thereunder. In due course, the feedback received by the Government was that neither any new industrial unit was established within the State nor the consumption of the fly ash had increased by the existing units. Resultantly, there was no extra disposal/consumption of fly ash which was being produced by the thermal power stations situated within the State of Uttar Pradesh. In other words, the avowed objective for issuing the notification to extend rebate did not fructify. In light of such feedback, the appropriate authority issued fresh notification dated 27th February, 1998 bearing No. T.I.F.-2-592/XI-9(226)94-U.P. Act-15-48-Order-98 to rescind the earlier notification and instead to grant a rebate of 25% in respect of the goods having fly ash contents between 10% to 30% by weight and a rebate of 50% in respect of the goods having fly ash contents exceeding 30% by weight on the tax levied under the Act in the districts mentioned thereunder, subject to certain conditions. The said notification reads thus: [S. No. 1289] Notification No. T.I.F. - 2-592/XI-9(226)94-U.P. Act-15-48-Order-98, dated 27.02.1998 Whereas, the State Government is satisfied that it is expedient in the public interest so to do: Now, therefore, in exercise of the powers Under Section 5 of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948), read with Section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), the Governor, with effect from March 1, 1998 is pleased: (a) to rescind the Notification No. TT-2-1885/XI-9(226)/94-UP-Act-15-48 Order-97, dated June 18, 1997; (b) to grant a rebate of twenty five percent on goods having fly-ash contents between ten to thirty percent by weight and a rebate of fifty percent on the goods having fly-ash contents exceeding thirty percent by weight on the tax levied under the Act in the district mentioned in column-2 Annexure given below for the period mentioned in column-3 of the said Annexure subject to the following condition: CONDITIONS (i) such goods shall be manufactured in a unit established in the area mentioned in column-2 of the Annexure; (ii) such goods shall be manufactured by using fly-ash purchased or received from the thermal power stations situated on Uttar Pradesh; (iii) the dealer claiming rebate under this notification shall keep records in which following informations will be shown: (a) date; (b) name of thermal power stations from which fly-ash is purchased or received; (c) weight of fly-ash; (d) name of manufactured goods; (e) weight of manufactured goods; (f) weight of fly-ash used in manufacturing of such goods; (g) weight of other goods used in manufacture of such goods; (iv) the total weight of manufactured goods and percentage of fly-ash used, should be mentioned on goods of packing of such goods as far as possible. ANNEXURE Serial Number Name of District Period for which the rebate will be allowed 1 2 3 1 Banda, Hamirpur, Jalaun, Mahoba, Jhansi, Lalitpur and Shahuji Nagar. Twelve Years 2 Almora, Chamoli, Bageshwar, Dehradun, Fatehpur, Jaunpur, Kanpur (Dehat), Nainital, Pauri Garhwal, Pithoragarh, Sultanpur, Champawat, Tehri Garhwal, Udham Singh Nagar, Uttar Kashi and Growth Centre. ANNEXURE Serial Number Name of District Period for which the rebate will be allowed 1 2 3 1 Banda, Hamirpur, Jalaun, Mahoba, Jhansi, Lalitpur and Shahuji Nagar. Twelve Years 2 Almora, Chamoli, Bageshwar, Dehradun, Fatehpur, Jaunpur, Kanpur (Dehat), Nainital, Pauri Garhwal, Pithoragarh, Sultanpur, Champawat, Tehri Garhwal, Udham Singh Nagar, Uttar Kashi and Growth Centre. Twelve Years 3 (i) The District of Azamgarh, Ambedkar-Nagar, Bahraich, Ballia, Ten Years Barabanki, Basti, Badaun, Bulandshahr, Deoria, Etah, Etawah, Faizabad, Farrukhabad, Ghazipur, Gonda, Hardoi, Mainpuri, Mathura, Mau, Moradabad, Padrauna, Pilibhit, Pratapgarh, Raebareli, Rampur, Shahjahanpur, Sidharath Nagar, Sitapur, Unnao, Kaushambhi, Jyotiba-Phule Nagar, Mahamaya Nagar and Shravasti. (ii) The area of Allahabad District in South of the river Jamuna and confluent Ganga (Excluding the area included under Municipal Corporation, Allahabad). Ten Years (iii) The Taj Trapezium Area Ten Years (iv) Greater Noida Industrial Development Area Ten Years The Districts of Agra (excluding Taj Trapezium area), Aligarh (excluding Taj Trapezium area), Allahabad (excluding the area in south of rivers Jamuna and confluent Ganga but including the area included under Municipal Corporation Allahabad), Bareilly, Bhadohi, Bijnor, Firozabad (excluding Taj Trapezium area), Ghaziabad (excluding Greater Noida Industrial Development Area), Gorakhpur, Haridwar, Kanpur (Nagar), Lakhimpur Kheri, Lucknow, Maharajganj, Meerut, Muzaffarnagar, Saharanpur, Varanasi, Gautam Buddh Nagar, Chandauli, Mirzapur and Sonbhadra Explanation: The verification of percentage of fly-ash used by fly-ash based industries shall be made of the basis of Government orders issued in this behalf from time to time. 3. This notification came to be issued with intent to promote and encourage the industrial activities in the identified backward and underdeveloped areas. This notification, however, was assailed in two writ petitions filed before the High Court of Judicature at Allahabad (for short, 'the High Court'). The challenge was essentially on the ground that the conditions specified in the notification resulted in causing discriminatory treatment to the producers and suppliers of the sale product imported from neighbouring States as opposed to the goods manufactured and produced in the State of Uttar Pradesh. Such dispensation contravened the constitutional provisions of Articles 301 and 304(a) of the Constitution of India. The High Court vide order dated 29th January, 2004 upheld the said challenge. The State of Uttar Pradesh carried the matter in appeal against the said decision of the High Court, which eventually culminated with the judgment of this Court, affirming the challenge, in State of Uttar Pradesh and Ors. The High Court vide order dated 29th January, 2004 upheld the said challenge. The State of Uttar Pradesh carried the matter in appeal against the said decision of the High Court, which eventually culminated with the judgment of this Court, affirming the challenge, in State of Uttar Pradesh and Ors. vs. Jaiprakash Associates Limited (2014) 4 SCC 720 . This Court held that rebate of tax granted by the State Government only to the cement manufacturing units using fly ash as raw material in the units established in the districts of the State of Uttar Pradesh, is violative of the provisions contained in Articles 301 and 304(a) of the Constitution of India. The Court further declared that notification, therefore, would also apply to the cement manufacturing units of the neighbouring States who were using fly ash as raw material. 4. After the decision of the High Court dated 29th January, 2004, the appropriate authority was advised to rescind the Notification dated 27th February, 1998. The Principal Secretary of the Tax and Registration Department processed the proposal for rescinding the said notification and submitted for comments of Council of Ministers which read thus: CONFIDENTIAL COMMENTS FOR THE HONORABLE COUNCIL OF MINISTERS. SUB: Repealing the exemption (rebate) available to units based on fly ash Industries established in certain districts have been granted exemption on tax levied under the Act for eight, ten, twelve years vide Govt. Notification No. vya.ka./592/gyarah-9(226)/94, dated 27 February 1997, Under Section 5 of the Trade Tax Act on the following grounds: (a) Where the content of fly ash is 10% to 30% of the total weight of goods - 25% rebate on tax. (b) Where the content of fly ash is more than 30% of the total weight of goods - 50% rebate on the tax. 2. Accordingly Under Section 8(5) of the Central Sales Tax Act, by the Govt. Notification No. vya.ka/- 2-593/gyaraha-9 (226) 94, dated 27th February 1998, similar rebate has been allowed. A condition was prescribed in the above notifications that such goods shall be manufactured within the units established in the area mentioned in column No. 2 of the annexure and such goods shall be manufactured from Fly Ash purchased from or received from the thermal power stations situated in Uttar Pradesh. Above notifications were challenged before the Hon'ble High Court by the writ petition. 3. Above notifications were challenged before the Hon'ble High Court by the writ petition. 3. Commissioner, Trade Tax has informed that in the Writ Petitions No. 957/99 M/s. Bela Cement Ltd. v. State and Writ Petition No. 958/99 M/s. Jai Prakash Industries v. State, Bench of the Hon'ble High Court has by the order dated 29.1.2004 declared the above conditions mentioned in the notification as unconstitutional. It has also been mentioned that effect of the above judgment shall be that henceforth facility of rebate will not only be available to the above types of industrial units situated in Uttar Pradesh only, but above rebate shall also be available to the unit situated outside the Uttar Pradesh. It is also apprised that in regard to above, Addl. Advocate General has given the legal opinion that considering the revenue loss being caused in future above notifications can be repealed. In case above notifications have to be repealed from retrospective effect then the same can be done by way of an ordinance. In accordance with the legal opinion tendered by the Hon'ble Add. Advocate General, a recommendation has made to proceed further expeditiously. 4. It appears that the main objective of providing the rebate vide the above notifications was that the Industrial units of the Uttar Pradesh should utilize more and more fly ash available for disposal in the state, in view of the above rebates. In the light of above judgment of the Hon'ble High Court, now above rebate shall also be available to the unit situated outside the state. Therefore it deems to be fit that above notifications should be repealed. In this regard the proposal of Commissioner Trade Tax seems to be proper. 5. Therefore it is proposed that notifications issued Under Section 5 of the Trade Tax Act and Section 8(5) of Central Sales Tax Act, related to rebate applicable to industries based on the fly ash should be repealed. 6. Finance department has expressed the consent to the above proposal. 7. Law department has expressed the view that it had been advised by the Add. Advocate General that to prevent the revenue loss notification dated 22.7.1998 can be repealed. In view of the above the proceedings for repealing the impugned notifications is legally possible. 8. Honorable Minister has examined these comments. 9. Order of the Hon'ble Cabinet is prayed for on the Para 5 above. Advocate General that to prevent the revenue loss notification dated 22.7.1998 can be repealed. In view of the above the proceedings for repealing the impugned notifications is legally possible. 8. Honorable Minister has examined these comments. 9. Order of the Hon'ble Cabinet is prayed for on the Para 5 above. Sd/- (Rita Sinha) Principal Secretary Tax & Registration Department File No. 9 (63)/2001 Lucknow dated 19 August, 2004 5. The appropriate authority of the State eventually took decision on the said proposal, as a result of which a notification dated 14th October, 2004 came to be issued rescinding the earlier notification dated 27th February, 1998. The said notification reads thus: NOTIFICATION No. KA. NI.-2-2996/XI-9(63)/2001-Act, 74-56 Order - (38) 2004 Dated Lucknow:: October 14, 2004 WHEREAS, the State Government is satisfied that it is expedient so to do in public interest. Now, therefore, in exercise of the powers Sub-section (5) of Section 8 of the Central Sales Tax Act, 1956 (Act No. 74 of 1956) read with Section 21 of the General Clauses Act, 1897 (Act No. 10 of 1897) the Governor is pleased to rescind, with effect from October 14, 2004, the government notification No. T.I.F. - 2-593/X-9(226)/94-Act-74-56-Order-98, dated February 27, 1998. 6. This notification is the subject matter of challenge in the present proceedings. 7. The Respondents in the respective appeals preferred separate writ petitions asserting that because of the representation made to the stake holders vide notification dated 27th February, 1998, they had commenced production of the specified goods and complied with the requisite conditions provided under the said notification entitling them to avail rebate of the Uttar Pradesh Tax facility. They had commenced commercial production before coming into effect of the impugned notification on 14th October, 2004. However, due to coming into effect of stated notification they have been denied of the rebate which they could have earned for ten years. 8. In the case of Respondent in Civil Appeal No. 1579/2019 -M/s. Birla Corporation Limited (for short, 'the BCL'), the factory was set up by the said Respondent at Raebareli and it had commenced commercial production from 14th December, 1998. As the said Respondent had complied with all the conditions specified in the notification dated 27th February, 1998, it availed the rebate facility from 14th December, 1998 until 13th October, 2004. As the said Respondent had complied with all the conditions specified in the notification dated 27th February, 1998, it availed the rebate facility from 14th December, 1998 until 13th October, 2004. It could have continued to avail of that facility for a period of ten years, i.e., upto 13th December, 2008, but that arrangement has been disrupted because of the issuance of the impugned notification dated 14th October, 2004. In other words, denial of rebate to Respondent-BCL is for the period from 14th October, 2004 to 13th December, 2008. 9. In the case of Respondent in Civil Appeal No. 1580/2019 -M/s. Jai Prakash Associates Limited (for short, 'the JPAL'), it was operating its factory outside the State and because of the condition specified in the notification dated 27th February, 1998, had challenged the said notification which, as aforesaid, was upheld by the High Court and later by this Court. In terms of the said decision, this Respondent could have continued with its business and also avail of the rebate but for the impugned notification issued on 14th October, 2004. However, despite the said Respondent (JPAL) having succeeded before the High Court in Writ Petition No. 958 (Tax) of 1999 vide judgment dated 29th January, 2004, out of abundant precaution, it decided to set up a factory of its own in the area specified in the notification dated 27th February, 1998, to avoid any further controversy or dispute regarding tax rebate facility. In furtherance of that decision, after seeking necessary approvals, the said Respondent (JPAL) commenced commercial production in the factory set up in the notified area in the State of Uttar Pradesh w.e.f. 18th September, 2004 and in terms of the notification dated 27th February, 1998, in vogue, became entitled to avail rebate facility for a period of ten years, i.e., up to 17th September, 2014. However, because of the intervening notification dated 14th October, 2004, the said Respondent (JPAL) has been denied of that facility even though it had invested almost over Rs. 100 crores to set up a new factory within the notified area in the State of Uttar Pradesh. 10. However, because of the intervening notification dated 14th October, 2004, the said Respondent (JPAL) has been denied of that facility even though it had invested almost over Rs. 100 crores to set up a new factory within the notified area in the State of Uttar Pradesh. 10. In this background, both the Respondents filed separate writ petitions before the High Court asserting that the State could not have resiled from the promise or representation it had made in terms of notification dated 27th February, 1998, and the impugned notification dated 14th October, 2004, therefore, suffered from the vice of being violative of promissory estoppel. It was asserted that the State, in exercise of its executive power, cannot resile from the promise it had made by inviting setting up of industry within the designated areas in the State of Uttar Pradesh and in the process, withdraw the rebate facility with retrospective effect. That could be done only by the legislature by enacting a law in that behalf or by issuing ordinance as was suggested in the note submitted to the Council of Ministers referred to above. It was also asserted that, in fact, the notification, as issued on 14th October, 2004, specified that the same would come into effect from the date it is issued. There is no indication whatsoever that the intention behind issuing the said notification was to withdraw the facility of stake holders who had already set up their industrial units and commenced commercial production prior to 14th October, 2004. The thrust of the challenge was that the decision to rescind the notification dated 27th February, 1998 was to discontinue the rebate to industry that would be set up on and from 14th October, 2004 and to other industrial units in the neighbouring States on account of the decision of the High Court. However, that decision cannot be implemented or enforced against the industries which had already commenced commercial production within the designated areas in the State of Uttar Pradesh after 27th February, 1998 but before 14th October, 2004. Taking any other view would result in giving retrospective or retroactive effect to the notification dated 14th October, 2004. That is impermissible in law. 11. Taking any other view would result in giving retrospective or retroactive effect to the notification dated 14th October, 2004. That is impermissible in law. 11. The writ Petitioners had also contended that in any case, the State Government had failed to make out a case of inevitable supervening circumstances warranting cancellation and withdrawal of the rebate facility with retrospective effect. The fact that the High Court decided the issue against the State and extended the benefit to other industrial units in the neighbouring States, by itself cannot be the basis much less a supervening circumstance to justify the act of resiling from the commitment flowing from the notification dated 27th February, 1998. 12. The Appellant-State had resisted the writ petitions by filing affidavit before the High Court. The stand taken by the State before the High Court essentially was that the State had power to rescind its notification dated 27th February, 1998 and withdraw rebate facility to all industrial units because of the supervening circumstances. The emphasis to invoke that power was essentially because of the judgment of the Allahabad High Court dated 29th January, 2004 and the inability of the State to verify the claims of the industrial units in the neighbouring States which was beyond the territorial jurisdiction of the State authorities. 13. The High Court vide impugned judgment, in the first place held that the State had given assurance about the rebate on the specified goods produced in the designated areas within the State on complying with other conditions specified in notification dated 27th February, 1998. It then proceeded to hold that the State Government in the Indian context and the Indian jurisprudence was amenable to the doctrine of promissory estoppel like any other private party or individual. On that finding, the High Court concluded that the notification issued on 14th October, 2004 cannot stand the test of judicial scrutiny qua the claim of the industrial units which were already established within the designated area in the State and had commenced commercial production of the stated goods before 14th October, 2004. It also rejected the stand taken by the State Government that it was justified in doing so because of supervening public interest and resultantly allowed the writ petitions preferred by the concerned Respondents herein. The conclusion recorded by the High Court reads thus: SUMMARY 121. It also rejected the stand taken by the State Government that it was justified in doing so because of supervening public interest and resultantly allowed the writ petitions preferred by the concerned Respondents herein. The conclusion recorded by the High Court reads thus: SUMMARY 121. Supervening public interest may not be established merely by pleading in the counter affidavit. It shall not be sufficient to meet out the requirement of law. The supervening public interest should be adjudged on the basis of material placed by the State Government during the course of judicial review. Nothing has been brought on record to establish as to what prompted the government to revoke earlier notification more so when the situation has not been changed and fly ash remain an ecological hazard release by thermal power stations. 122. Since, before issuance of the impugned notification the Petitioner had started production establishing the factory in Tanda, the principle of promissory estoppel attracted in view of catena of judgment of Hon'ble Supreme Court particularly Kalyanpur Cement Ltd. (supra) as well as worldwide settled proposition of law, it shall be fitness of thing and to maintain the people's confidence in the administration, ordinarily government should be abide by its assurance or promise and person should not be deprived of the benefit available from such assurance, in case it acted on. Though the government has got right to change its policy but that too is subject to judicial review and the courts have got ample power to ensure that because of change of policy fundamental or statutory rights of the citizen is not infringed. Equitable relief under the principle of promissory estoppel may be given by courts for the ends of justice. 123. The impugned notification should be given prospective effect with regard to tax rebate. Thus, industries which were established relying upon the assurance given in the notification dated 27.2.1998 and started production are entitled for tax rebate for the period which they were entitled at the time of production or before the issuance of impugned notification. 124. In view of above, writ petition deserves to be allowed partly and Petitioner seems to be entitled for benefit of tax exemption in view of original notification dated 27.2.1998. 124. In view of above, writ petition deserves to be allowed partly and Petitioner seems to be entitled for benefit of tax exemption in view of original notification dated 27.2.1998. However, keeping in view the law on the subject that government has got right to change the policy on one hand and on the other hand, Petitioner's right may be protected by applying the impugned notification prospectively, the right available under the principle of promissory estoppel may be protected by applying the impugned notification prospectively. The prayer for quashing the impugned notification is refused and the relief is moulded accordingly.