2021 (9) TMI 947 - HC - VAT and Sales Tax

Area Based Exemption - Grant of certain incentives in the form of subsidy to specified industries set up on or after 01.04.2012 - time limitation - rejection of application on the sole ground that the claims were submitted after expiry of two years from the period to which the claims related - Tripura Industrial Incentives Promotion Scheme, 2012 - HELD THAT - The impugned order suffers from proper understanding of the order of the Court dated 12th January, 2021 and also suffers from lack of proper analysis of the provisions of the scheme. While disposing of the writ petition by the said order dated 12th January, 2021 we had made certain significant observations - the purpose was to allow the authority to examine the facts more minutely expecting that if the petitioner was prevented from making application for refund in time because a department of the government did not provide him requisite certificates, such delay would be condoned. The authority shall examine the petitioner s refund applications on merits and dispose of the same within two month from today - Petition disposed off.

Summary

Issues:
Challenge to order rejecting refund claims under Tripura Industrial Incentives Promotion Scheme, 2012 based on delay in application submission.

Analysis:
The petitioner, a private limited company engaged in manufacturing, filed refund claims under the Tripura Industrial Incentives Promotion Scheme, 2012 for specific periods. The District Industries Centre rejected the claims due to submission after the two-year period. The petitioner explained the delay was due to non-issuance of necessary VAT payment certificates by the authorities. The High Court, in a previous order, directed re-examination of the case considering the delay reason provided by the petitioner. The Court emphasized that one government department's delay should not hinder benefits under the scheme, and the District Industrial Centre should review the representations made by the petitioner.

The respondent, the General Manager, DIC, West Tripura, subsequently rejected the petitioner's applications again citing delay. However, the Court found the respondent's order lacking proper understanding of the previous court order and scheme provisions. The respondent's reasons for rejection were deemed incorrect, as the Court had directed a detailed examination of the delay issue due to non-issuance of certificates. The respondent's stance on the scheme not allowing condonation of delay and suggesting alternative document submission was deemed erroneous.

The Court set aside the impugned order dated 17.04.2021, directing the authority to re-examine the refund applications on merit within two months. The Court emphasized the importance of adhering to the previous court directions and properly considering the petitioner's explanations for the delay. The judgment ensures a fair review of the refund claims under the Tripura Industrial Incentives Promotion Scheme, 2012, emphasizing the need for a detailed examination of the reasons for delay in application submission.