Lupin Limited Vs Union of India And Others (Sikkim High Court)
Summary: The Sikkim High Court set aside the orders confirming recovery of ₹37,93,159 as alleged excess budgetary support from Lupin Limited, together with interest at 15% per annum, and directed the authorities to reconsider the matter afresh after giving the petitioner an effective opportunity of hearing. The dispute concerned budgetary support for July 2017 to March 2018 under the Budgetary Support Scheme notified by the Department of Industrial Policy and Promotion on 05.10.2017. Under the Scheme, eligible goods manufactured by the petitioner attracted budgetary support corresponding to 58% of Central Tax and 29% of Integrated Tax paid through the cash ledger after utilisation of eligible Input Tax Credit (ITC). The petitioner had been granted ₹12,48,27,999 against a claim of ₹12,63,99,662.
The authorities initially alleged excess support of ₹41,64,578. Following earlier proceedings and verification, the alleged excess was revised to ₹37,93,159. The impugned Order-in-Original dated 07.01.2025 confirmed its recovery with interest, and ₹75,40,592 was subsequently adjusted from refund otherwise payable to the petitioner for April to June 2024. The petitioner contended that an amount had inadvertently been disclosed in Table 8C of GSTR-9 and that this disclosure was relied upon for concluding that excess budgetary support had been received.
