9911796707
TMI Blog2023 (6) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... were granted sanction for such subsidy on December 2, 2011. Thereafter, in the year 2015, interest subsidy was also granted to the petitioners by the respondent Authorities. However, the subsidies were never disbursed in favour of the petitioners. Learned counsel contends that as per clause 16.10 of the Scheme, in cases where it is not possible to fully adjust the subsidy against VAT paid by the unit on year basis, balance entitlement at the close of the 9th year shall be paid to the unit through account payee cheque at the 10th year. In the present case, the petitioners are governed by the second limb of clause 16.10, since the petitioners are not liable to pay VAT at all. It is contended that the petitioners were informed by the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioners never paid VAT to the State of West Bengal and, as such, are not entitled to the benefits under the Scheme at all. Upon hearing the learned counsel for the petitioners, it transpires from the records that the Scheme in question was floated for the purposes of extending certain additional financial support for promotion of large and medium scale industries in the background regions of the State, as mentioned in the very first paragraph of the Notification dated February 28, 2011, which contains the Scheme. In the said Gazette Notification, clause 16 is one of the modes of payment but not an eligibility criterion. Eligibility criteria for incentive under the Scheme are stipulated in clause 6 of the Scheme. There is nothing in the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other than that mentioned in paragraph 16.9 shall be paid in ten equal annual instalments by way of adjustment against VAT paid by the unit in the previous year. The crucial limb of the said clause, in the context of the present case, however, is the subsequent sentence therein which specifies that in case it is not possible to fully adjust the subsidy against VAT paid by the units on year basis, balance entitlement at the close of the 9th year shall be paid to the unit through account payee cheque at the 10th year. The reliance of the respondent Authorities on the Sanction Letter dated December 2, 2011, annexed at page 95 of the writ petition, is entirely misplaced for the proposition sought to be advanced by the respondent. Clause [c] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was further observed and advised by the Additional Commissioner that the situation of nil VAT payability being reduced to nil arises due to inflated duty structure characterized by higher rates of taxes on inputs locally purchased and lower rates of taxes on intra-state sales of any final product. It was also explained categorically that, thus, there is always an accumulation of excess ITC even after setting off against VAT liability. An empirical statement generated from the data base of the Commercial Tax Department on the basis of the quarterly returns filed for each of the four quarters of the consecutive financial years reflects the tax payment behaviour of the dealer, in the light of which the Additional Commissioner opined that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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