Punjab challenged tax concessions for industrial undertaking in Jammu and Kashmir, Himachal Pradesh and Uttarakhand
The state of Punjab has challenged in the Supreme Court the validity of Union government notification giving concessions in taxes and also providing subsidy to the new as well as existing industries in the states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand. Contending that such concessions provided on selective basis would adversely affect the industrial development of Punjab, the state government prayed for quashing of these notifications as null and void.
The Union government has announced 100 per cent exemption in excise duty and several subsidies to attract new investments in the three states. The government has also announced concessions in income tax to the industries to be set up in these states for a period of five to ten years.
Alleging step-motherly treatment by the Centre, the petitioner has pleaded that such discriminatory concessions and exemptions would go against the interest of Punjab.
It would be difficult to invite and attract investments both from within the country as well as from foreign countries as the industrial houses would find the investments in these three states more attracting as compared to Punjab, it noted.
The petitioner has also urged the Supreme Court to stay the operations of the impugned notifications till the final disposal of the suit.