19.
The answer is: C
Explanation
The correct option is C: Pournami Oil Mills Vs State of Kerala.
This is a landmark case where the Supreme Court of India applied the doctrine of promissory estoppel against the Government and held that the Government cannot go back on its promise made to the petitioner, a private company, to grant exemption from sales tax for a period of five years. The Government had issued a notification in 1979 inviting entrepreneurs to set up industries in the state and promising them various incentives, including sales tax exemption. The petitioner relied on this notification and established an oil mill in 1980. However, in 1981, the Government withdrew the sales tax exemption and imposed sales tax on the petitioner. The petitioner challenged this action and claimed that the Government was bound by the doctrine of promissory estoppel. The Supreme Court agreed with the petitioner and held that the Government cannot act arbitrarily and unreasonably and must be held accountable for its promise. The Court observed that the doctrine of promissory estoppel is applicable against the Government in the exercise of its governmental, public or executive functions and the doctrine of executive necessity or freedom of future executive action cannot be invoked to defeat the legitimate expectations of the citizens. The Court also held that the doctrine of promissory estoppel does not require any consideration or formal contract and it can be enforced in the absence of any statutory prohibition. The Court further held that the Government can only withdraw from its promise on the ground of public interest and not on the ground of financial difficulty or change of policy. The Court, therefore, quashed the notification withdrawing the sales tax exemption and directed the Government to refund the sales tax collected from the petitioner. This case is considered as a milestone in the development of the doctrine of promissory estoppel in India and its application against the Government.