Sales Tax - Exemption - Amendment to definition of "manufacture" - Claim for exemption from payment of sales tax after amendment excluding "tea blending" from the definition of "manufacture" - Court's analysis of the relevant provisions and submissions of the parties - Appellants' contention on legitimate expectation and promissory estoppel - Court's rejection of such contentions - Nature of exemption as subject to fulfillment of conditions and within the purview of the state government's policy decision - Withdrawal of exemption as prospective, not retrospective - Court's interpretation of Section 39 of the Act, 1994 - Appellants' ceasing to be manufacturers as per amended definition - Court's ruling that appellants not entitled to exemption from payment of sales tax after the amendment. [Para 8]

Promissory Estoppel - Applicability against a statute - Court's observation that there cannot be promissory estoppel against a statute. [Para 8.2]

Vested Right - Existing right - Distinction - Court's finding that the case involves an existing right, which can be varied, modified, or withdrawn, rather than a vested right - Court's rejection of the argument that "vested right" in favor of the appellants could not be taken away by the amendment. [Para 8.3]

Policy Decision - Exemption from sales tax - Court's recognition of the state government's authority in granting, continuing, or withdrawing the exemption - Reluctance of the court to interfere with policy decisions unless withdrawal is found to be arbitrary. [Para 8.4]

Prospective Withdrawal - Amendment to definition of "manufacture" - Court's categorization of the withdrawal of exemption as prospective rather than retrospective - Court's ruling that the appellants' entitlement to exemption ceased from the date of the amendment, as they ceased to be manufacturers under the amended definition. [Para 8.5]

Section 39 of the Act, 1994 - Relevant provision for claiming exemption - Court's interpretation of Section 39 and its emphasis on the term "manufacture" as a condition sine qua non for availing exemption - Effect of ceasing to be a manufacturer on eligibility for exemption. [Para 8.4 and 8.5]

Sales Tax Exemption - No claim as a matter of right - Court's affirmation that nobody can claim exemption from sales tax as a matter of right - Requirement of fulfilling conditions for availing exemption. [Para 8.7]

Court's Decision - Appeals dismissed - Court's agreement with the view of the tribunal and the high court that the appellants are not entitled to exemption from payment of sales tax after the amendment to the definition of "manufacture" - Dismissal of the appeals. [Para 9]

Pre-referral jurisdiction of the court under Section 11(6) of the Arbitration and Conciliation Amendment Act, 2015 - Whether the court should decide the issue of the existence and validity of the arbitration agreement at the pre-referral stage or leave it to the arbitral tribunal. [Para 1]

Section 11(6A) of the Arbitration Act - Post the Arbitration and Conciliation Amendment Act, 2015, the jurisdiction of the court under Section 11(6) of the Act is limited to examining the existence of an arbitration agreement between the parties. [Para 5.2]

Distinction between the existence and validity of an arbitration clause and non-arbitrability of the dispute - The referral court must conclusively decide the issue of the existence and validity of the arbitration agreement at the pre-referral stage, as it goes to the root of the matter. [Para 5.3]

Observations in the impugned order - The referral court failed to decide conclusively on the existence and validity of the arbitration agreement, leaving it to be determined by the arbitral tribunal. [Para 6]

Interconnectedness of the agreements - The issue of the agreements being interconnected and the reliance on precedents were not addressed by the Supreme Court, as it should be considered by the referral court. [Para 7]

Remittance of the case - The matter is remitted back to the High Court/referral court to decide the arbitration petitions afresh, taking into consideration the observations made in the Supreme Court's judgment. [Para 8]

No expression of opinion on merits - The Supreme Court did not express any opinion on the merits of the existence and validity of the arbitration agreement and the interconnectedness of the agreements. [Para 8]

Timeline for the decision - The referral court is directed to complete the decision on the arbitration petitions within three months from the date of receipt of the Supreme Court's order. [Para 8]

No order as to costs - In the given circumstances, no order is made regarding costs. [Para 8]

Appeal Allowed.

Promotion to the post of District Judge based on principle of merit-cum-seniority and passing a suitability test - Gujarat State Judicial Service Rules, 2005 - Recruitment Notice - Compliance with directions in the case of All India Judges' Association and Ors. - Distinction between promotion based on merit-cum-seniority and promotion strictly on merit - Purpose of limited competitive examination - Relevance of length of service and practical experience - Distinct rules in different states - Adoption of wrong promotion method. (Para 8)

Wrong method of promotion adopted by the High Court - Contrary to observations in the case of All India Judges' Association and Ors. and Gujarat State Judicial Service Rules, 2005 - Merit list and promotion solely on the basis of merit-cum-seniority - Denial of promotion to meritorious candidates - Principle of merit-cum-seniority affected. (Para 8.3, 8.4, 8.9)

Inapplicability of previous decisions - Decision in C.P. Kalra prior to the case of All India Judges' Association and Ors. - No direct controversy on merit-cum-seniority - Importance of merit and ability - Decision in V.K. Srivastava and Ors. not supporting promotees' arguments - Lower merit candidates promoted over higher merit candidates. (Para 8.7, 8.8)

Illegal and contrary nature of impugned Select List and Notification - Non-sustainability - Stay on implementation and operation of the Select List and Notification - Promotees to return to original posts pending final outcome of writ petition - Stay order limited to non-top 68 candidates in Merit List. (Para 9)

Referral of matter to bench headed by Chief Justice of India for final hearing - Importance of the case and directions in the case of All India Judges' Association and Ors. - Obtaining appropriate orders from Chief Justice on the administrative side - Scheduling of final hearing. (Para 10)

Customs duty exemption - Withdrawal of notification - Validity - Challenge to the withdrawal of a customs notification - Whether the withdrawal of the exemption notification was valid - Whether the withdrawal was in furtherance of public interest - Whether the withdrawal violated the principle of promissory estoppel - held that the withdrawal of the exemption notification by the government was valid and in furtherance of public interest [Para 2]

Exercise of power in public interest - Scope of judicial review - The power to grant or withdraw exemptions is within the exclusive domain of the executive government, which must exercise such power in the public interest - Judicial review is limited to determining the legality, bona fides, and relevance of the reasons given by the government - Merits, sufficiency, and wisdom of the economic measure are not subject to judicial scrutiny. [Para 28]

Relevant considerations for withdrawal of exemption - Availability of similar equipment manufactured domestically - The availability of equipment similar to the imported machinery within the country is a relevant factor for withdrawing the exemption - Adverse impact on domestic manufacturers or producers is a germane consideration. [Para 29]

Principles of promissory estoppel - Application against the government - The principle of promissory estoppel does not apply to the exercise of legislative power by the government - No vested right accrues to an assessee in the matter of tax concessions - Government has the right to modify or withdraw exemptions, but must give a reasonable opportunity to the affected party to restore the status quo ante. [Para 26]

Exercise of power under Section 25(1) of the Customs Act, 1962 - Discretion of the government - The power to grant or amend exemptions under Section 25(1) of the Customs Act, 1962 is discretionary, but not unrestricted - The government has the duty to examine the issue in light of public interest - The power may be exercised reasonably and in accordance with the spirit of the Constitution. [Para 22]

Decision of the High Court - Merits review of economic measure - High Court erred in conducting a merits review of the economic measure taken by the government - Court's role limited to determining the legality, bona fides, and relevance of the decision - Impugned judgment set aside. [Para 30]

Dismissal from Service – without inquiry - Facts: Appellant employee of the respondent organization - dismissed from service - without conducting an inquiry - dismissal on the satisfaction of the President - not expedient to hold any inquiry in the interest of the security of the State - challenged dismissal - Tribunal and the High Court not find any reason to interfere with the dismissal.

Constitutional Law - Disciplinary Proceedings - Dismissal without inquiry - Power of dispensing with inquiry under Rule 16(iii) of the Central Civil Services (CCA) Rules - Satisfaction of the President in the interest of the security of the State - Not subject to further judicial review - Scope of judicial review limited to mala fides or extraneous grounds - Consideration of penalty to be imposed must be ex-parte - Factors to be considered in deciding penalty - Employee's conduct, gravity of misconduct, impact on administration, extenuating circumstances - Acts and omissions of employee justifying dismissal - Order of dismissal upheld. (Para 22, 23, 25)

Security of State - Interpretation of expression - Includes security of part of State - Various ways in which security can be affected - Passing on state secrets or defence information, secret links with terrorists, etc. - Expansive and grave nature of security concerns - Dispensing with inquiry justified. (Para 23)

Disciplinary Proceedings - Judicial review - Scope of review when power to dispense with inquiry is invoked - Limited to mala fides or extraneous grounds - Satisfaction of the President not subject to scrutiny - No interference warranted if based on materials capable of arriving at a satisfaction that inquiry is not expedient in the interest of security of State. (Para 24)

Power of dismissal - Consideration of penalty - Factors to be taken into account - Employee's entire conduct, gravity of misconduct, impact on administration, extenuating circumstances - Acts and omissions of employee justifying dismissal - Dismissal upheld. (Para 25)

Constitutional law - Governor's power to invite Chief Minister - Objective material for calling floor test - Held, the Governor must have objective material before concluding that the Chief Minister has lost the confidence of the House and calling for a floor test. [Para 166]

Constitutional law - Governor's power to invite Chief Minister - Restoration of status quo ante - Resignation of Chief Minister - Held, the Court cannot quash a voluntary resignation, and the status quo ante cannot be restored if the Chief Minister has resigned before the floor test. [Para 194]

Constitutional law - Governor's power to invite Chief Minister - Authority to recognize factions within a political party - Role of Election Commission - Held, the Governor's authority is not exceeded by inviting a faction as long as the party has returned the highest number of candidates, and the Election Commission is the appropriate authority to determine the factions within a political party. [Para 204]

Constitution of India - Article 164(1B) - Disqualification of Minister - Pending disqualification petition - Applicability - Held, Article 164(1B) does not bar the appointment of a member as a Minister if a disqualification petition is pending adjudication before the Speaker. [Para 199]

Constitution of India - Article 164(1B) - Disqualification of Minister - Triggering of disqualification - Speaker's verdict - Held, Article 164(1B) is triggered only when the Speaker returns a verdict finding that the member has breached Paragraph 2 of the Tenth Schedule. [Para 200]

Constitution of India - Article 164(1B) - Disqualification of Minister - Disqualification related to date of act - Effect of subsequent acts - Held, subsequent acts or events do not have an exculpatory effect on the disqualification if the prohibited act has already been committed. [Para 202]

Constitution of India - Tenth Schedule - Disqualification of members - Procedure and jurisdiction of Speaker and Election Commission - Role of Court - Larger Bench reference - Held, the correctness of the decision in Nabam Rebia v. Deputy Speaker, Arunachal Pradesh Legislative Assembly, (2016) 8 SCC 1 is referred to a larger Bench of seven judges. [Para 206(a)]

Decision It cannot ordinarily adjudicate petitions for disqualification under the Tenth Schedule in the first instance, and the Speaker must decide disqualification petitions within a reasonable period. [Para 206(b)]

 MLA has the right to participate in the proceedings of the House regardless of the pendency of disqualification petitions, and the validity of the proceedings is not subject to the outcome of the disqualification petitions. [Para 206(c)]

The political party, and not the legislature party, appoints the Whip and the Leader of the party in the House. The Speaker should recognize the Whip and the Leader authorized by the Shiv Sena political party based on the party constitution. [Para 206(d)]

Speaker and the Election Commission of India (ECI) have concurrent jurisdiction to adjudicate on the petitions under the Tenth Schedule and Paragraph 15 of the Symbols Order, respectively. [Para 206(e)]

The effect of the deletion of Paragraph 3 of the Tenth Schedule is that the defense of 'split' is no longer available to members facing disqualification proceedings. The Speaker should determine the political party for adjudicating disqualification petitions when factions claim to be the same party. [Para 206(f)]

Governor was not justified in calling for a floor test as there was no objective material indicating that the Chief Minister had lost the confidence of the House. However, the status quo ante could not be restored as the Chief Minister had already resigned. [Para 206(h)]

Governor was justified in inviting Mr. Eknath Shinde to form the government based on the support extended by the Bharatiya Janata Party (BJP) MLAs and independent candidates. [Para 206(i)]

Constitution of India - Tenth Schedule - Disqualification of members - Jurisdiction of Court to adjudicate disqualification petitions - Speaker's role - Held, the Court cannot ordinarily adjudicate petitions for disqualification in the first instance, and the Speaker must decide disqualification petitions within a reasonable period. [Para 206(b)]

Constitution of India - Tenth Schedule - Disqualification of members - Right of MLA to participate in House proceedings - Pendency of disqualification petitions - Validity of proceedings - Held, an MLA has the right to participate in the House proceedings regardless of the pendency of disqualification petitions, and the validity of the proceedings is not subject to the outcome of the disqualification petitions. [Para 206(c)]

Insolvency and Bankruptcy Code, 2016 - Section 7 - Admission of application - Default by Corporate Debtor - Once National Company Law Tribunal (NCLT) is satisfied that default has occurred, there is no discretion left with NCLT to refuse admission of the application under Section 7 - Non-payment of a part of debt when it becomes due and payable amounts to default - NCLT may reject the application if the debt has not become due and payable - NCLT cannot reject the application on any other ground once default is established.

Insolvency and Bankruptcy Code, 2016 - Section 3(12) - Default - Non-payment of debt - Even non-payment of a part or instalment of the debt when it becomes due and payable will amount to default on the part of the Corporate Debtor.

Discretionary power of NCLT - Section 7(5)(a) of IBC confers discretionary power on NCLT - The discretionary power cannot be exercised arbitrarily or capriciously - NCLT must consider the grounds made by the Corporate Debtor against admission on their own merits - NCLT may exercise discretion to keep admission of the application in abeyance if there are good reasons, such as the existence of an award or decree in favor of the Corporate Debtor that exceeds the debt amount - Example given is illustrative.

Demand notice and acknowledgments - Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Non-honoring of demand notice by the Corporate Debtor - Original application for recovery filed before the Debt Recovery Tribunal - Corporate Debtor acknowledged the debt - Liability of the Corporate Debtor reflected in its Balance Sheet.

Interim order of Telangana High Court - Restrains coercive action against Corporate Debtor - Does not relate to all Bank Guarantees - No finding recorded that Corporate Debtor is not liable to pay the dues - Only prevents coercive action.

           Appeal dismissed - No merit in the appeal - No order as to costs.

Constitutional interpretation - National Capital Territory of Delhi (NCTD) - Interpretation of constitutional provisions governing NCTD's powers and functions - Analysis of Article 239AA and relevant constitutional principles - Determination of NCTD's legislative and executive powers over "services" - Examination of the relationship between Union and NCTD - Clarification of NCTD's status as a distinct entity with unique governance structures.

Relationship between legislative and executive powers - National Capital Territory of Delhi (NCTD) - Understanding the interplay between NCTD's legislative and executive powers - Examination of the scope and extent of NCTD's authority in relation to various subjects - Analysis of constitutional provisions and principles guiding the exercise of legislative and executive functions.

Exclusion of subjects - National Capital Territory of Delhi (NCTD) - Identification and interpretation of subjects excluded from NCTD's legislative and executive powers - Examination of the exclusion of "public order," "police," and "land" from NCTD's authority - Understanding the limitations placed on NCTD's governance in relation to these specific subjects.

Role of Lieutenant Governor - National Capital Territory of Delhi (NCTD) - Determination of the powers and functions of the Lieutenant Governor - Analysis of the Lieutenant Governor's role in relation to the aid and advice of the Council of Ministers - Interpretation of constitutional provisions governing the Lieutenant Governor's authority in NCTD's governance.

Applicability of Part XIV to Union territories - National Capital Territory of Delhi (NCTD) - Examination of the applicability of Part XIV of the Constitution to Union territories - Interpretation of Article 309 and its proviso in relation to the recruitment and conditions of service of persons serving the Union or a State - Understanding the transitional nature of the rule-making power under Article 309.

Legislative power over "services" - National Capital Territory of Delhi (NCTD) - Determination of NCTD's legislative power over "services" under Entry 41 of List II of the Seventh Schedule - Analysis of relevant statutes enacted by the Legislative Assembly of NCTD - Interpretation of constitutional provisions and principles governing the exercise of legislative authority over "services" by NCTD.

Distinction between NCTD and other Union Territories - National Capital Territory of Delhi (NCTD) - Recognition of NCTD's unique status among Union Territories - Differentiation between NCTD and other Union Territories in terms of governance structures and constitutional provisions - Understanding the "sui generis" nature of NCTD.

Scope of legislative and executive powers - National Capital Territory of Delhi (NCTD) - Clarification of the scope and extent of NCTD's legislative and executive powers - Analysis of constitutional provisions and principles guiding the exercise of legislative and executive functions by NCTD - Determination of the limitations on NCTD's authority.

Interpretation of Article 239AA(3)(a) - National Capital Territory of Delhi (NCTD) - Interpretation of the phrase "insofar as any such matter is applicable to Union Territories" in Article 239AA(3)(a) - Understanding the scope of NCTD's legislative power over entries in the State List or Concurrent List - Examination of the broader principles and provisions of the Constitution guiding NCTD's legislative power.

Legislative and executive power over "Services" - National Capital Territory of Delhi (NCTD) - Confirmation of NCTD's legislative and executive power over "Services" under Entry 41 of List II of the Seventh Schedule - Analysis of relevant provisions and rules governing the recruitment, conditions of service, and control of personnel in the public services of NCTD - Recognition of NCTD's authority in enacting laws and making rules related to "Services."

Role of Lieutenant Governor in relation to services - National Capital Territory of Delhi (NCTD) - Affirmation of the Lieutenant Governor's binding obligation to act on the aid and advice of the Council of Ministers of NCTD in matters within the legislative scope of NCTD - Recognition of the Lieutenant Governor's duty to adhere to decisions made by the Government of NCTD on services - Clarification of the Lieutenant Governor's role in NCTD's governance.

Decision:

National Capital Territory of Delhi (NCTD) has a unique status among Union Territories, and its governance structure distinguishes it from other Union Territories. NCTD has legislative and executive powers over matters within its legislative competence, including the authority to enact laws and make rules related to "Services" under Entry 41 of List II of the Seventh Schedule. The Lieutenant Governor of NCTD is bound by the aid and advice of the Council of Ministers of NCTD in matters within the legislative scope of NCTD, particularly in relation to services. The Court clarified that the phrase "insofar as any such matter is applicable to Union Territories" in Article 239AA(3)(a) does not further exclude NCTD's legislative power over entries in the State List or Concurrent List. The division of administrative powers between the Union and NCTD must be respected, and the executive power of NCTD with respect to entries in List II and List III is subject to the executive power conferred upon the Union by the Constitution or by law enacted by Parliament.

Criminal Procedure Code, 1973 – Section 313 – Examination of accused – Principles governing examination of accused under Section 313 of CrPC discussed – It is the duty of the Trial Court to put each material circumstance appearing in the evidence against the accused specifically, distinctively and separately – Failure to do so amounts to a serious irregularity vitiating the trial if it is shown to have prejudiced the accused – Court must ordinarily eschew material circumstances not put to the accused from consideration – If the irregularity does not result in failure of justice, it becomes a curable defect – Court empowered to take the help of the prosecutor and the defence counsel in preparing relevant questions – Lawyers must act as officers of the Court and not as mouthpieces of their respective clients – National and State Judicial Academies directed to take note of defaults in adherence to Section 313 of CrPC – Conviction vitiated due to non-compliance with principles of examination of accused – Remanding the case after passage of significant time would be unjust – Conviction and sentence set aside. [Para 18, Para 20]

Constitution of India, 1950 – Article 21 – Right to fair trial – Examination of accused under Section 313 of CrPC – Failure to put each material circumstance to the accused amounts to violation of right to fair trial – Serious irregularity vitiating the trial if it is shown to have prejudiced the accused – Court must ensure that accused is given a fair chance to defend himself – Importance of adherence to principles of examination of accused discussed – Failure to comply with principles may render the trial invalid. [Para 18]

Criminal Procedure Code, 1973 – Section 342 – Scope and importance of Section 342 of CrPC – Accused to be properly examined and given an opportunity to explain circumstances appearing in evidence against him – Neglecting or slurring over examination under Section 342 is not acceptable – Judicial officers advised to give due importance to Section 342 and comply with its provisions – Material circumstances against accused must be put to him specifically, distinctly and separately. [Para 12]

Criminal Procedure Code, 1973 – Section 537 – Curable irregularity – Failure to comply with requirements of Section 313 of CrPC considered as curable irregularity if it does not result in failure of justice – Prejudice caused to accused must be established – Delay in raising objection to irregularity is one of the factors considered – Court may remit case to Trial Court for recording supplementary statement of accused under Section 313, but must consider passage of time and prejudice caused to accused. [Para 21-22]

Sentence – Conviction set aside – Unjust to remand case after significant passage of time – Appellant already undergone substantial incarceration – Option of remand not considered appropriate – Appellant directed to be set at liberty unless required to be detained in connection with any other case. [Para 23]