Johnson Paints Pvt. Ltd. Vs State of Bihar (Patna High Court)
The writ petition before the Patna High Court was filed seeking directions for reimbursement of tax incentives and grant of subsidies allegedly due under the Industrial Policy Resolution, 2011. The petitioner sought reimbursement of 80% of Value Added Tax (VAT) for the period from April 2017 to June 2017 and reimbursement of the admitted State GST deposited under the Bihar GST Act, 2017 from July 2017 onwards, up to the date of eligibility. The petitioner also sought directions for early grant of subsidies, including capital subsidy, contending that discontinuance of reimbursements had adversely affected its unit.
In the counter-affidavit filed by the State authorities, it was stated that a large number of applications involving substantial financial implications had been received through the departmental online portal up to 31.08.2023. Due to the significant financial outlay, the Finance Department advised that Cabinet approval be obtained. Accordingly, in the Cabinet meeting held on 25.04.2025, approval was granted to consider claims of units that had applied through the portal up to 31.08.2023, subject to fulfillment of the conditions prescribed under the Industrial Incentive Policy, 2011. Pursuant to this approval, a resolution to process such claims was issued through Memo No. 1107 dated 05.05.2025.
