Alkem Laboratories Limited vs. Union Of INDIA And Ors
Held
The Court held that the Budgetary Support Scheme was intended for 'eligible units' that existed and made investments under the original excise duty exemption. Since the petitioners were new legal entities distinct from the original manufacturers, they were not 'eligible units' under the scheme and thus not entitled to the budgetary support.
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 eligibility for the 'residual period' of an earlier excise duty exemption, despite changes in ownership/constitution leading to new GST registration numbers.
Key Issues
Whether units that underwent changes in ownership or constitution, resulting in new GST registrations, are entitled to budgetary support under the 2017 scheme for the residual period of an erstwhile excise duty exemption.
Sections Cited
Section 2(84) CGST Act, Section 22 CGST Act, 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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