Glenmark Pharmaceuticals Limited Vs Union of India (Sikkim High Court)
The case between Glenmark Pharmaceuticals Limited and the Union of India before the Sikkim High Court revolves around the rejection of the petitioner’s claim for budgetary support for the period July-September 2017 under the “Scheme of budgetary support under Goods and Services Tax Regime.” The petitioner’s claim for October 2017 to June 2018 had been allowed previously.
The primary issue in question was whether the petitioner’s separate claims for July and August 2017, instead of a combined quarterly claim, should have been considered favorably. The court examined whether there was a violation of natural justice and whether the petitioner had fulfilled the requirements of the Budgetary Support Scheme.
The petitioner argued that they had satisfied all conditions but were denied due to erroneous interpretations of circulars issued by the Central Board of Excise and Customs. They contended that their separate claims for July and August 2017 were in line with Circular dated 10.01.2019 and that Circular dated 27.11.2017 should not supersede the Budgetary Support Scheme.
The court analyzed the Budgetary Support Scheme and the circulars in question. It found that the scheme mandated quarterly claims, and while Circular dated 27.11.2017 allowed manual applications for the quarter ending September 2017, it did not deviate from the quarterly filing requirement. Circular dated 10.01.2019 aimed to facilitate the verification of refund claims but did not permit monthly claims.
