Retrospective withdrawal of purchase tax subsidy granted to sugar mill is not lawful

Government of Tamil Nadu Vs Tvl.Ponni Sugars (Erode) Limited (Madras High Court) Madras High Court held that retrospective withdrawal of purchase tax subsidy granted to sugar mill has no sanction of law. Accordingly, the assessee is entitled to the full benefit of subsidy as set out in the Government Orders issued in 1984. Facts- The assessee is a sugar mill. It had been granted an annual subsidy equivalent to the quantum of purchase tax on sugarcane for a period of two years commencing from the date of going into production. This benefit was vide G.O.Ms.No.1414, Industries Department dated 30...