Govt Can Withdraw Tax Concessions in Public Interest: Supreme Court

The Supreme Court has ruled that tax concessions granted by the government do not create an "indefeasible right" for recipients to claim them indefinitely.

The Bench held that the government maintains the statutory power to withdraw such benefits in the public interest, particularly for revenue augmentation or addressing fiscal constraints.

The Court clarified that while industries can enjoy concessions while they are in force, this right is "defeasible" and subject to the same power that granted it.

However, the Bench emphasized that such withdrawals must adhere to principles of fair play and reasonableness to avoid causing undue hardship to businesses.

[State of Maharashtra v. Reliance Industries Ltd & Ors.]