The Jammu and Kashmir High Court quashed rejection of claim under Budgetary Support Scheme, thereby granting relief to M/s Coromandel International Ltd, the petitioner.
The writ petitions under Article 226 of the Constitution of India are directed against order passed by the respondent No.3 to the extent of rejection of claim of the petitioner under Budgetary Support Scheme. The petitioner also prays for a writ of Mandamus directing the respondents to allow the Budgetary support to it by calculating the same on the quantum of cash tax paid through cash ledger account on monthly basis instead of adopting the calculations on quarterly basis.
The grievance projected by the petitioner in these petitions is that, with clarification or without clarification, the position is clear that budgetary support is required to be allowed to the eligible industrial units, like the petitioner by calculating the same on the quantum of cash tax paid through cash ledger account on monthly basis instead of adopting the calculations on quarterly basis as is being done by the Adjudicating Authority.
It is submitted that the petitioner, applied for reimbursement by way of Budgetary support for the period, January 2020 to March 2020 and April 2020 to June 2020 before the Central Tax Authorities.
The Petitioner argued that the Adjudicating Authority illegally and arbitrarily rejected the reimbursement under Budgetary support on the ground that the petitioner had closing balance of Input Tax Credit lying unutilized at the end of quarter and had reduced the budgetary support arbitrarily to the extent of the closing balance of Input Tax Credit that remained unutilized at the end of the quarter.
The Counsel for the petitioner submitted that in view of the clarification issued, the doubts, if any, with regard to the applicability of formula to work out the budgetary support have been cleared and, therefore, the issue needs to be reconsidered by the Adjudicating Authority.
The Bench comprising of Chief Justice N Kotiswar Singh and Justice Sanjeev Kumar observed that “Having heard learned counsel for the parties and perused the material on record, we are of the view that, issuance of clarification by the Finance Department, UT of Jammu and Kashmir, has necessitated revisiting of claim of the petitioner by the Adjudicating Authority.”
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