Shiva Industries Vs Union of India (Jammu & Kashmir High Court)
Jammu & Kashmir High Court has ruled in favor of Shiva Industries, an industrial unit engaged in cement production, directing the Deputy Commissioner, CGST Division, Samba, to release the full amount of budgetary support claimed by the company. The court found that the partial rejection of Shiva Industries’ refund claims by the respondent was contrary to the clear provisions of the Government of India’s notification dated October 5, 2017, concerning budgetary support under the Goods and Services Tax (GST) regime.
Shiva Industries had challenged refund orders issued on April 22, 2022, and June 23, 2022, by the Deputy Commissioner, CGST Division, Samba. The core of the petitioner’s grievance was the unexplained rejection of a portion of their refund claims, specifically Rs. 1,678 for the period of July to September 2021 and Rs. 7,170 for January to March 2022, despite the bulk of their claims being sanctioned.
Background of the Scheme
Prior to the implementation of GST on July 1, 2017, industrial units in regions like Jammu & Kashmir were eligible for excise duty refunds under notifications such as No. 56/2002-C.E. and No. 1/2010-C.E. These notifications were subsequently rescinded. To provide continued financial assistance, the Government of India, through the Ministry of Commerce & Industry, introduced a new scheme of budgetary support via notification No. F.No.10(1)2017-DBA-II/NER dated October 5, 2017. This scheme aimed to provide budgetary support to existing eligible manufacturing units that had been availing benefits under the previous excise duty exemption/refund schemes.
