Zydus Welness Products Limited vs. Union Of INDIA And Ors.
Held
The High Court held that the petitioners were not 'eligible units' under the Budgetary Support Scheme. The scheme was intended for the original manufacturers who had made investments and were eligible for the excise exemption, not for new legal entities formed after changes in ownership, as these new entities were distinct from the previous 'persons' who were eligible.
Facts
Zydus Wellness Products Limited, formed after conversion of a partnership firm, and Alkem Laboratories Limited, which acquired a unit via slump sale, sought budgetary support under a 2017 scheme. They claimed this support for the residual period for which their predecessor entities were entitled to excise duty exemption. The changes in legal entity resulted in new GST registration numbers for both petitioners.
Key Issues
The key legal issue was whether petitioners, having undergone changes in ownership/legal entity and obtained new GST registrations, were entitled to budgetary support under the scheme meant for 'eligible units' for the residual period of excise exemption.
Sections Cited
Section 2(84), Section 22, Rule 10(1)
AI-generated summary — verify with the full judgment below
THE HIGH COURT OF SIKKIM : GANGTOK (Civil Extra Ordinary Jurisdiction)
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SINGLE BENCH: THE HON’BLE MR. JUSTICE BHASKAR RAJ PRADHAN, JUDGE -------------------------------------------------------------------------------------------
W.P.(C) No. 20 of 2022
Zydus Wellness Products Limited, Represented through: Umesh Parikh, Chief Financial Officer, Zydus Wellness Products Limited, Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Near Vaishnodevi Circle, Ahmedabad, Gujarat – 382481. ….. Petitioner
versus
Union of India, Through the Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi – 110001. 2. Director, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Udyog Bhawan, New Delhi – 110001. 3. The Assistant Commissioner, Central Goods & Service Tax, Gangtok Division, Gangtok, Indira By-Pass Road, Near District Court, Sichey, East Sikkim, Gangtok – 737101. 4. The
The judgment continues below.
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