M/S Cavendish Industries Limited & Anr. vs. Union Of INDIA & Ors.

W.P.(C)/11103/2019HC DelhiGSTCNR DLHC01005487201922 November 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA6 pages

For Petitioner: Mr.S.Ganesh, Sr.Advocate with Mr.Sandeep Chilana, Mr.Shekhar Sharma, Mr.Jordan R., Ms.Anjali Jain, Mr.Prem Kandpal and Mr.Abdullah Tanveer, AdvocatesFor Respondent: Mr.Asheesh Jain, CGSC with Mr.Keshav Mann, Advocate for R-1 & 2. Ms.Anushree Narain, Advocate for R- 3

AI SummaryRemanded

Held

The Delhi High Court, with the consent of the parties, disposed of the writ petition in terms of the directions given by the Supreme Court in M/s Hero Motocorp Ltd. vs. Union of India. The Court noted that the Supreme Court had observed that states should consider reimbursing industrial units out of their share of revenue received through devolution (42%) for taxes paid under existing incentive schemes that were impacted by the transition to GST. The Court granted the petitioners liberty to file a fresh representation with the GST Council within two weeks. The GST Council was requested to consider this representation expeditiously and in accordance with the law, as per the Supreme Court's observations.

Facts

The petitioners, M/s Cavendish Industries Limited and another, filed a writ petition before the Delhi High Court. They sought an amendment to their petition to include a prayer for the State of Uttarakhand to implement a mechanism for payment from budgetary support. This payment would be equal to the balance 42% of the CGST paid by the petitioner, representing the Central Government's devolved share, as directed by the Supreme Court in M/s Hero Motocorp Ltd. vs. Union of India. The respondents, Union of India and others, accepted notice and had no objection to the application or the writ petition being disposed of in accordance with the Supreme Court's judgment. The petitioners also agreed to this course of action.

Key Issues

1. Whether the State of Uttarakhand should implement a mechanism for budgetary support to reimburse the petitioner for 42% of the CGST paid, in line with the Supreme Court's directions in M/s Hero Motocorp Ltd. vs. Union of India? Petitioner's Contention: The petitioner argued that the Supreme Court in M/s Hero Motocorp Ltd. directed that states should consider reimbursing industrial units out of their devolved share of revenue (42%) for taxes paid under previous incentive schemes that could not be continued under GST. They sought the implementation of this mechanism by the State of Uttarakhand. Respondents' Contention: The respondents (Union of India and others) stated they had no objection to the application being allowed and submitted that the writ petition itself could be disposed of in accordance with the Supreme Court's judgment in M/s Hero Motocorp Ltd. They did not present any arguments against the petitioner's claim but agreed to the proposed resolution.

Sections Cited

None explicitly discussed or named in the judgment excerpt provided, beyond the reference to the Supreme Court judgment which discusses the GST regime and previous tax incentives.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~44 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 11103/2019 M/S CAVENDISH INDUSTRIES LIMITED & ANR. ..... Petitioners Through: Mr.S.Ganesh, Sr.Advocate with Mr.Sandeep Chilana, Mr.Shekhar Sharma, Mr.Jordan R., Ms.Anjali Jain, Mr.Prem Kandpal and Mr.Abdullah Tanveer, Advocates. versus UNION OF INDIA & ORS. ..... Respondents Through: Mr.Asheesh Jain, CGSC with Mr.Keshav Mann, Advocate for R-1 & 2. Ms.Anushree Narain, Advocate for R- 3. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

O R D E R % 22.11.2022 C.M.Nos.45707-45709/2019 Exemption allowed, subject to all just exceptions. Accordingly, the applications stand disposed of. C.M.No.32202/2020 Learned senior counsel for the petitioners wishes to withdraw the present application. Accordingly, the same is dismissed as withdrawn. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/06/2026 at 16:22:20

C.M.No.50259/2022 Present application has been filed seeking amendment of the present writ petition by adding prayer (c-1). The (c-1) prayer c

The judgment continues below.

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