Lupin Ltd. Vs Union of India & Ors. (Jammu And Kashmir High Court)
The petitioner is a leading pharmaceutical manufacturer. It has a unit in then State of Jammu and Kashmir. It availed benefit of area based exemption under the erstwhile central excise regime. With introduction of GST, the ministry of commerce introduced budgetary support for remainder period by granting refund of CGST. The petitioner applied and was allowed the benefit up to 2023 by order dated 29.05.2018. However, petitioner challenged the said order contending that it was entitled to benefit up to 2027. The Hon’ble Jammu and Kashmir High court set aside such order and directed the authorized officer to pass fresh orders. However, in the meantime, office memorandums came to be issued by the Ministry declaring list of eligible units. Such list held that the petitioner is entitled to benefit up to 2017. Based on such memorandum, recovery of benefits sanctioned was initiated. The same came to be challenged.
The Hon’ble Jammu and Kashmir High Court set aside the office memorandums issued by the Ministry and consequent recovery action. It held: (i) the memorandums fly in the face of the earlier order passed by the Court on 24.09.2020; (ii) once the court directed fresh decision after hearing the petitioner; such exercise not being carried out; the action was illegal; (iii) no reasoned order was passed which could allow the petitioner to know the reason for acceptance or otherwise of his claim; (iv) directs the department to comply with the earlier directions.
