2026-VIL-324-BOM
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VAT High Court Cases

Maharashtra Municipal Corporations Act - Promissory Estoppel, Exemption from Octroi to developer of Special Economic Zone (SEZ), Refund of Octroi - Petitioner company was granted approval to set up an IT/ITES Sector specific SEZ - As per the Maharashtra Government's policy dated 12.10.2001, the developers of SEZs were entitled to exemption from all state and local taxes, including octroi – Petitioner aggrieved by denial of the Pune Municipal Corporation to grant the exemption and direction to pay octroi - Whether the petitioner is entitled to a refund of the Octroi paid by it, based on the promise of exemption made in the Maharashtra Government's policy – HELD - The Maharashtra Government's policy dated 12.10.2001 vide Resolution No. SEZ2001/(152)/IND-2 clearly promised exemption from all State and local taxes, including octroi, to the developers of SEZs. The petitioner acted on this promise and set up the SEZ. The doctrine of promissory estoppel would squarely apply in this case, and the State Government cannot be allowed to resile from its promise - The State Government had the necessary statutory powers under the Maharashtra Municipal Corporations Act to direct the PMC to amend the Octroi Rules to give effect to the exemption promised in the policy. However, the State Government failed to take any such steps, despite being aware of the issue - It was the duty of the State Government to ensure that the Petitioner, who was an approved developer of the SEZ got benefit of exemption from levying the octroi. The State Government was bound to fulfill its own policy and the promise made under the policy to the developers of SEZs - While the PMC could not be directed to refund the octroi in the absence of any amendment to the Octroi Rules. However, the same concession cannot be given to the State of Maharashtra - The State Government is directed to refund the octroi paid by the petitioner, along with interest at the rate of 6% per annum - The writ petition is allowed
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