Case Law Details
Coromandel International Ltd Vs Union of India and others (Jammu and Kashmir High Court)
It is submitted that petitioner, applied for reimbursement by way of Budgetary support for the period, January 2020 to March 2020 and April 2020 to June 2020 before Central Tax Authorities. The Adjudicating Authority illegally and arbitrarily rejected the reimbursement under Budgetary support on the ground that the petitioner had closing balance of Input Tax Credit lying unutilized at the end of quarter and had reduced the budgetary support arbitrarily to the extent of the closing balance of Input Tax Credit that remained unutilized at the end of the quarter. The rejection of claim of budgetary support, it is submitted, runs contrary to the Scheme as envisaged by the Government of India.
It is submitted that, during pendency of the writ petitions, the Financial Commissioner of Finance Department, UT of Jammu and Kashmir issued clarification vide his No. FD-ST/29/2022-03 dated 26.04.2022 with respect to determination of amount of reimbursement under SRO 519 dated 21.12.2017, SRO 521 dated 21.12.2017 and SRO 63 dated 05.02.2018.
The grievance projected by the petitioner in these petitions is that, with clarification or without clarification, the position is clear that the budgetary support is required to be allowed to the eligible industrial units, like the petitioner by calculating the same on the quantum of cash tax paid through cash ledger account on monthly basis instead of adopting the calculations on quarterly basis as is being done by the Adjudicating Authority. It is submitted that in view of the clarification issued, the doubts, if any, with regard to the applicability of formula to work out the budgetary support have been cleared and, therefore, the issue needs to be reconsidered by the Adjudicating Authority.
Having heard learned counsel for the parties and perused the material on record, we are of the view that, issuance of clarification by the Finance Department, UT of Jammu and Kashmir, has necessitated revisiting of claim of the petitioner by the Adjudicating Authority.
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