M/S. Nu Vista Limited (Formerly Emami Cement Limited) vs. The State Of West Bengal And Ors.

Facts

The petitioner, M/s. Nu Vista Limited (formerly Emami Cement Limited), sought a writ of mandamus to compel the respondents to issue R.C.-II under the West Bengal State Support for Industry Scheme, 2013, and to set aside an order dated November 30, 2021. The petitioner had obtained R.C.-I on June 28, 2017, commenced commercial production on November 30, 2017, and applied for R.C.-II on December 28, 2017. A previous order from the High Court on September 9, 2021, directed the respondents to consider the petitioner's application. The impugned order of November 30, 2021, indicated the Director, Directorate of Industries, West Bengal, could not proceed without direction from the Department of Industries, Commerce & Enterprises. The petitioner claims to have fulfilled all requirements under Clause 5.3 of the 2013 Scheme.

Held

The Court held that the respondents have no further excuse to delay the process of issuing R.C.-II to the petitioner. The Court found that Clause 15.2 of the West Bengal State Support for Industry Scheme, 2013, which states the Scheme's provisions apply mutatis mutandis even after VAT is replaced by another Act, makes it clear that objections to issuing R.C.-II after the GST regime came into force on July 1, 2017, cannot be sustained. The Court noted that the respondents had issued R.C.-II to another entity on July 19, 2017, even after the GST regime began. Furthermore, the respondents had admittedly not complied with the procedural steps stipulated in Clause 5.3 of the Scheme, including conducting a joint inspection with WBIDC. The Court directed respondent no. 2, the Director, Directorate of Industries, West Bengal, to comply with the steps in Clause 5.3, conduct a joint inspection with WBIDC within three weeks, and upon satisfaction of the petitioner's eligibility, issue R.C.-II within a further three weeks. The eligibility is to be assessed under the conditions of the 2013 Scheme.

Key Issues

1. Whether the respondents can refuse to issue R.C.-II to the petitioner under the West Bengal State Support for Industry Scheme, 2013, after the introduction of the Goods and Services Tax (GST) regime, given Clause 15.2 of the Scheme. Petitioner's arguments: The petitioner contended that Clause 15.2 of the 2013 Scheme explicitly states that its provisions shall apply mutatis mutandis even after the Value Added Tax (VAT) is replaced by any other Act, implying the Scheme remains applicable post-GST. They argued that the respondents have no valid excuse for delaying the issuance of R.C.-II, especially since another entity received R.C.-II after the GST regime commenced. The petitioner also pointed out that the respondents have failed to comply with the procedural steps outlined in Clause 5.3 of the Scheme, such as conducting a joint inspection. Revenue/State's arguments: The judgment does not record any specific arguments made by the State respondents regarding their inability to issue R.C.-II. Their primary stance, as reflected in the impugned order, was the need for direction from a higher department.