An incentive or benefit extended by Government should not be denied on technical ground

Kanchan Oil Industries Limited Vs State of West Bengal & Others (Calcutta High Court)

Hon’ble Division Bench of the Hon’ble Calcutta High Court in the matter Kanchan Oil Industries Limited vs. State of West Bengal & ors. M.A.T.  No. 1495 of 2022 vide its judgment dated 06.12.2022 allowed the manual form filed beyond due date for seeking incentive under West Bengal Industrial Promotion Assistance to Industrial Enterprises (scheme).

The Government of West Bengal notified West Bengal Industrial Promotion Assistance to Industrial Enterprises (scheme) with effect from 01.01.2010 with the object to encourage manufacturing goods in West Bengal and to take care of the financial needs for expansion of their capacity, modernization and improving their marketing capabilities.  The appellant filed an application in terms of paragraph 4 of the said scheme for the relevant period. In terms of the scheme, such application has to be made within four months from the end of each quarter. The scheme also provided extension of time beyond the period of four months in deserving cases. For the quarter ending 30.06.2012 the prescribed form should have been filed by the appellant by 31.10.2012. The appellant due to lack of internet connectivity in the office of the appellant could file the same and approached the authority on 02.11.2012 and thereafter on 04.11.2012 the form was manually presented before the said authority. The authority declined to grant the benefit on the ground that the form was filed well beyond the period fixed in the scheme.

It was held by the Hon’ble Division Bench of the Hon’ble Calcutta High Court that the scheme itself provides for entertaining applications beyond the period stipulated in deserving cases. The ordinary dictionary meaning of the word deserving is “meritorious” a person who deserves another chance. In other words, if in the opinion of the officer, the case of the appellant is meritorious nothing prevents the officers from granting relief. Exercise of discretion by the authority concerned in such a matter should be in a manner to promote the purpose for which the scheme was introduced and not to the contrary. The purpose of the scheme as spelt out is for encouraging manufacturing activities expansion etc. which would go to generate direct and indirect employment in the state. Thus, any interpretation which is given which will stultify the objects of the schemes has to be frowned upon.

It was further held that on account of a technical ground such incentive or benefit extended by the Government should not be denied.

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