Uttarakhand High Court issues notice to Centre on Ashok Leyland's petition

The high court directed the Union government to file a counter affidavit and rejoinder while listing the matter after five weeks for hearing

The Uttarakhand High Court has issued a notice to the Union government on a petition filed by Ashok Leyland over the reduction in area-based duty incentives under the goods and services tax (GST) regime.

Ashok Leyland in the petition said that as against 100 per cent upfront exemption available under the promised area-based exemptions under the excise regime, reduced benefit has been extended through refund of only 58 per cent of the Central GST and 29 per cent of the Integrated GST paid through cash ledger.

The petitioner challenged the scheme on grounds of promissory estoppel and legitimate expectation. Promissory estoppel is