State of Gujarat & Ors. Vs Sahajanand Technologies Pvt. Ltd. & Ors. (Gujarat High Court)
SEZ Promise Made in 2002 Cannot Be Withdrawn Because Ordinance Arrived in 2004—Pre-Ordinance Lease Entitled to Stamp Duty Exemption: Gujarat HC
Summary: The Gujarat High Court has held that an industrial unit which acted upon the State Government’s SEZ Policy of 2002 could not be denied exemption from stamp duty & registration fee merely because its lease deed was executed before the Gujarat Special Economic Zone Ordinance, 2004 formally came into force.
The Division Bench held that the Ordinance merely gave statutory shape to the earlier policy promise. Denial of the promised fiscal benefit to units that acted upon the policy before 10.02.2004 would not only offend the doctrine of promissory estoppel, but would also create hostile discrimination between similarly situated SEZ units based only upon the date of execution of their documents.
Background of the Dispute
The State of Gujarat had formulated an SEZ Policy through Industries & Mines Department Resolution No. SEZ-2001-1456-G dated 19.07.2002.
The policy aimed to promote industrial development, attract investments, strengthen export infrastructure & create employment opportunities. It recognised SEZs as engines of economic growth & offered various incentives to developers as well as manufacturing, trading & service units established within such zones.
