M/S Torrent Pharmaceuticals LTD. (Unit Iii) (Erstwhile Unichem Laboratories LTD.) vs. Union Of INDIA And Ors.
Held
The High Court noted that the Single Bench judgments relied upon by the Assistant Commissioner, which denied BSS benefits due to change in ownership, had been set aside by a Division Bench. Finding the present case squarely covered by the Division Bench's binding decision, which held that units with a change of ownership are entitled to BSS benefits, the High Court allowed the writ petition.
Facts
M/s Torrent Pharmaceuticals Ltd. acquired a unit via slump sale and was subsequently sanctioned refunds totaling Rs. 12,18,27,592/- under the Budgetary Support Scheme (BSS). A recovery notice was later issued, and an order-in-original confirmed the demand for refund recovery, asserting that a change in ownership rendered the unit ineligible for BSS benefits based on a DPIIT clarification.
Key Issues
The key legal issue was whether a manufacturing unit, after undergoing a change in ownership through a slump sale, remains eligible for benefits under the Budgetary Support Scheme, especially considering a DPIIT clarification suggesting ineligibility.
Sections Cited
Article 226 of the Constitution of India, paragraph 9 of the Budgetary Support Scheme, paragraph 9.1 of the Budgetary Support Scheme
AI-generated summary — verify with the full judgment below
THE HIGH COURT OF SIKKIM: GANGTOK (Civil Extra Ordinary Jurisdiction) ------------------------------------------------------------------------------------------ SINGLE BENCH: THE HON’BLE MR. JUSTICE BHASKAR RAJ PRADHAN, JUDGE ------------------------------------------------------------------------------------------
W.P. (C) No. 55 of 2023
M/s Torrent Pharmaceuticals Ltd. (Unit-III), (Erstwhile Unichem Laboratories Ltd.), Represented by Assistant Manager Finance, Sanjay Singh, N.H. No.10, Bagheykhola, Majhitar, East Sikkim, 737136. ….. Petitioner
Versus
Union of India,
Through Secretary,
Department of Revenue, Ministry of Finance,
North Block, New Delhi-110001. 2. Commissioner of CGST, Siliguri,
Gangtok Division,
C.R. Building, Haren Mukherjee Road,
Hakimpara, Siliguri,
West Bengal-734001. 3. Under Secretary, Department for Promotion
of Industry and Internal Trade,
(DPIIT), Udyog Bhawan, New Delhi-110001. 4. Assistant Commissioner, CGST,
Gangtok Division, Indira Byepass,
Near District Court,
Sichey, Gangtok, East Sikkim-7371001. ….. Respondents
The judgment continues below.
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Reproduced from the public record of the Sikkim High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.