Team Goemkarponn
PANAJI: The Supreme Court reaffirmed the State’s right to remove financial incentives in the public interest, upholding the Goa government’s decision to recoup energy tariff rebates that had previously been given to industrial enterprises.
The bench, which includes Justices Sandeep and Dipankar Datta
Mehta decided that where financial constraints on the public coffers are involved, the promissory estoppel theory cannot be strictly applied.
The Court rejected the petition, citing earlier decisions to support its conclusion that the demand notices issued by the Goa government were legitimate and appropriate.
The ruling upholds the High Court of Bombay at Goa’s 2001 ruling and gives the government more authority to remove incentives that put a burden on state coffers.
In this context, a number of businesses have filed court cases, including Puja Ferro Alloys Pvt Ltd, Global Ispat Pvt Ltd, Sunrise Electromelt Ltd, and Karthik Inductions Ltd.
The Electricity Department’s demand notice to recoup previously granted electricity tariff rebates under its 1991 notification—which allowed a 25% rebate on electricity tariffs for industrial units—infuriated the corporations.
