EXPRESS HOSTELS PVT LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioners have filed this petition under Article 226 of the Constitution of India challenging the order dated 13.09.2005 passed by the respondent No. 2 i.e. Commissioner of Tourism, Government of Gujarat, Gandhinagar on behalf of the 19th State Level Committee for Package of Incentives 1995 2000 for Tourism Project, on the ground that the impugned order has been passed contrary to the fundamental principle of Equity and Rule of Law i.e. Promissory estoppel in as much as the respondents have curtailed the tax incentives initially granted to the petitioner No. 1 Company under the New Package Scheme of Incentives for Tourism Projects 1995 2000.

(2.) It is the case of the petitioners that the Government of Gujarat had declared New Tourism Policy-1995 under which Tourism was accorded the status of an industry and a package of scheme of incentive for tourism projects, for the period 1995 2000 came to be announced vide Resolution No. NTP-1095/1983-C dated 20.12.1995 passed by the Information, Broadcasting and Tourism Department, Government of Gujarat. Under the said scheme of incentives, a tax holiday of 5 to 10 years was made available to newly set up tourism units as well as expansion of existing Tourism units. The scheme of incentives granted tax holidays to expansion of existing units, for a period of 5 years, in respect of the following taxes :-

(3.) These exemptions are given for a period of 5 years to expansion of existing projects, subject to the condition that the existing tourism unit increases its investment in fixed capital or capacity by atleast 50% or more.