HC of Calcutta to consider making the Industrial Incentive Scheme GST-compliant

Oct 6, 2022 | GST FAQ, News | 0 comments

While considering a petition in relation to the West Bengal State Support for Industries Scheme, 2008, the Calcutta High Court has directed the State Government to make the scheme GST-compliant to grant relief to the industries availing benefit of such schemes.

The petitioner, M/s EmamiAgrotech Ltd, approached the High Court against an order dated 20.12.2021 passed by the Secretary, Department of Industry, Commerce and Enterprises, Government of West Bengal. The order was passed in compliance with the directions of the Court in an earlier writ petition which related to the petitioner’s claim for disbursal of incentive under “West Bengal State Support for Industries Scheme, 2008 as amended up to 2010.

Before the Single bench, the petitioners argued that the GST regime came into force on 1st July 2017. The petitioner prays for making the Scheme compliant with the GST regime which subsequently came into effect.

The petitioner also claimed to fulfill the relevant criteria for the grant of incentives under both Schemes. The petitioner also prays for the required inspection to be undertaken by the State respondents before the grant of RC-II.

Justice Moushumi Bhattacharya observed that “Upon considering the Scheme and the fact that the GST regime has come into place since 2017, the respondents should take expeditious steps to make the Scheme GST-compliant for the benefit of industrial units which fall under the Scheme. The industrial units like the petitioner cannot be kept in a limbo and denied the incentives, which were specifically promised to these units at the time of introduction of the Scheme from 2008 onwards. There is a definite case of legitimate expectation in the present case and the petitioners are entitled to be provided with clarity in that regard.”

“Needless to say, the eligibility of the petitioner shall be evaluated by the concerned department before undertaking the requisite steps under the Scheme for grant of incentives to the petitioner. It is also made clear that after making the Scheme GST-compliant, the petitioner shall be at liberty of praying for the RC-II certificate which is the prayer in the present writ petition,” the Court said.

While considering a petition in relation with the West Bengal State Support for Industries Scheme, 2008, the Calcutta High Court has directed the State Government to make the scheme GST-compliant to grant relief to the industries availing benefit of such schemes.

The petitioner, M/s EmamiAgrotech Ltd, approached the High Court against an order dated 20.12.2021 passed by the Secretary, Department of Industry, Commerce and Enterprises, Government of West Bengal. The order was passed in compliance with the directions of the Court in earlier writ petition which related to the petitioner’s claim for disbursal of incentive under “West Bengal State Support for Industries Scheme, 2008 as amended up to 2010.

Before the Single bench, the petitioners argued that the GST regime came into force on 1st July, 2017. The petitioner prays for making the Scheme compliant with the GST regime which subsequently came into effect.

The petitioner also claimed to fulfill the relevant criteria for grant of incentive under both the Schemes. The petitioner also prays for the required inspection to be undertaken by the State respondents before grant of RC-II.

Justice Moushumi Bhattacharya observed that “Upon considering the Scheme and the fact that the GST regime has come into place since 2017, the respondents should take expeditious steps to make the Scheme GST-compliant for the benefit of industrial units which fall under the Scheme. The industrial units like the petitioner cannot be kept in a limbo and denied the incentives, which were specifically promised to these units at the time of introduction of the Scheme from 2008 onwards. There is a definite case of legitimate expectation in the present case and the petitioners are entitled to be provided with clarity in that regard.”

“Needless to say, the eligibility of the petitioner shall be evaluated by the concerned department before undertaking the requisite steps under the Scheme for grant of incentives to the petitioner. It is also made clear that after making the Scheme GST-compliant, the petitioner shall be at liberty of praying for the RC-II certificate which is the prayer in the present writ petition,” the Court said.

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