HC directed dept. to take requisite steps to make West Bengal State Support Scheme GST compliant

Case Details: Emami Agrotech Ltd. v. State of West Bengal - [2022] 142 taxmann.com 395 (Calcutta)

Judiciary and Counsel Details

• • Moushumi Bhattacharya, J.
  • Jishnu Saha, Rajarshi Dutta, Rahul Dhanuka, Hersh Chaudhury, N. Chatterjee, V. Kothari & Md. T.M. Siddiqui for the Appearing Parties.

Facts of the Case

The petitioner had been granted incentives under West Bengal State Support for Industries Scheme 2008 for refund of a percentage of VAT paid by industrial units. The GST regime came into force on 1st July, 2017. The petitioner filed petition and prayed for making the Scheme compliant with the GST regime which subsequently came into effect.

High Court Held

The Honorable High Court noted that the industrial units like the petitioner can’t 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.

Therefore, the Court held that 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.