Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Capital Investment Subsidy Industrial Development |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Industrial Development:Capital Investment Subsidy – Under Rajasthan InvestmentPromotion Scheme 2003 – Clauses 7(i)(a), 7(i)(b), 7(vi) and 7(vii),10 and 13 – Request by the appellant-Company for customizedpackage of incentives for setting up a cement plant – Pre-BIDI (PreBoard of Infrastructure Development and Investment Institution)meeting, after considering the request recommended that the cementpackage and the Scheme of 2003 was applicable to the Company –BIDI also resolved that recently announced cement package andthe 2003 Scheme would be applicable to the Company – TheCompany addressed letter dated 26.4.2006 to Commissioner ofIndustries seeking registration in terms of sub-clause (vii) of clause7 of the 2003 Scheme – Before any decision could be taken on theletter, State Government deleted sub-clauses (vi) and (vii) fromClause 7 by Notification dated 28.4.2006 – Company’srepresentation seeking withdrawal of Notification dated 28.4.2006– State replied that the Company would be eligible for concessionsas per the 2003 Scheme – Company also entered into MOU withthe State – After establishment of the cement plant and startingproduction therein, Company sought Entitlement Certificate underthe 2003 Scheme – State Level Screening Committee (SLSC) allowedCapital Investment Subsidy to the Company to the extent of 75% ofdeposited VAT and Entitlement Certificate was issued – Companyavailed the benefit of 75% subsidy in terms of Entitlement Certificate– After Finance Department of the State raised doubts about thedecision in respect of grant of subsidy upto 75% to the Company,SLSC re-examined the matter and suggested appropriate actionunder Clause 13 of the 2003 Scheme – In Revision proceedingsunder Clause 13, the competent Authority decided that SLSC haderroneously issued Entitlement Certificates and the Company wasnot entitled to the subsidy beyond 50% of the tax payable anddeposited – Pursuant thereto revised Entitlement Certificates wereissued allowing subsidy upto 50% – The Company was directed torefund the amount of excess availed subsidy together with interest@ 18% – Writ petition challenging the orders was dismissed byHigh Court – Appeal to Supreme Court – Held: Extending of anyincentive in the form of exemption, rebate, concession or subsidy isthe matter of policy of Government – A Government is entitled toframe a particular policy and to alter the same – Whether the cementindustry was to be granted 75% subsidy under 2003 Scheme was amatter of policy – The policy of extending 75% subsidy to cementindustry was withdrawn by the Government by deleting sub-clauses(vi) and (vii) of clause 7 of the 2003 Scheme – As the policy ofextending 75% subsidy was not in existence at the time when theapplication of the Company was considered, no benefit could havebeen claimed under non-existent policy – Company is entitled tosubsidy only to the extent of 50% and hence liable to refund theexcess 25% – Since the disbursement of 75% subsidy to the Companywas on the basis of erroneous decision and was not relatable tobreach of any of the conditions of the Scheme on the part of theCompany, the Revenue is not entitled to demand interest on the excessamount @ 18% p.a. – However, as the Company had obtained undueadvantage by availing 25% extra subsidy and had undertaken torefund extra subsidy with interest @ 12% p.a. Company is liable torefund excess amount with interest @ 12% p.a. 393 Doctrines/ PrinciplesDoctrine of Contemporanea Expotio – is a guide to theinterpretation of Statute or a document by referring the expositionthat the same had received from competent Authority at relevantpoint of time – Held, not applicable in present case.Principle of Promissory Estoppel – Applicability of – Heldnot applicable in the facts of the present case. |
Judge | Hon'ble Mr. Justice Dinesh Maheshwari |
Neutral Citation | 2020 INSC 456 |
Petitioner | M/s. Ultratech Cement Ltd. & Anr. |
Respondent | State Of Rajasthan & Ors. |
SCR | [2020] 7 S.C.R. 392 |
Judgement Date | 2020-07-17 |
Case Number | 2773 |
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