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2022 (12) TMI 1046 - HC - VAT and Sales TaxEntitlement of interest subsidy under West Bengal State Support for Industry Scheme, 2008 - Fixation of Capital Investment Subsidy (FCIS) in full - seeking total waiver of electricity subsidy in terms of the Scheme - HELD THAT:- In the matter of BHAI JASPAL SINGH AND ANOTHER VERSUS ASSISTANT COMMISSIONER OF COMMERCIAL TAXES AND OTHERS [2010 (10) TMI 899 - SUPREME COURT] considering the exemption notification for sales tax and VAT under the West Bengal Sales Tax Act, 1954, Hon’ble Supreme Court has held that the exemption provision should be construed strictly against the person claiming exemption and that before an exemption can be recognized, a person or property claiming exemption must come clearly within language apparently granting the exemption. We are conscious of the fact that the aforesaid judgment have been rendered by the Hon’ble Supreme Court considering the statutory notifications relating to tax exemption whereas the notification in question concerning WBSSIS – 2008 is not a statutory notification but the broad principles stated by the Hon’ble Supreme Court will be attracted in respect of the present notification also - The above judgment make it clear that the concession notification should be strictly construed to ascertain whether the subject falls in the notification or in the exemption clause, but once the subject is found to be eligible, then liberal interpretation is to given for extending the benefit. It is also settled that while determining the entitlement, the purpose of the scheme or notification should not be defeated. Claim relating to fixed capital investment subsidy - HELD THAT:- The writ petitioner was granted the registration certificate for assistance under the WBSSIS – 2008 dated 22nd of May, 2012 in respect of general eligibility to receive benefit under the scheme. The writ petitioner is undisputedly a unit with investment under Scale 1 and is not an ineligible unit under clause 9.1.1 - The denial of fixed capital investment subsidy on the ground that it will lead to granting of double benefit to the petitioner, cannot be sustained, as under the Scheme of subsidy, WBIDC was acting in two different and separate capacities as ‘Authorized Agent’ and as ‘Financial Institution’. Hence, we find no error in the order of the learned Single Judge in allowing the prayer for grant of fixed capital investment subsidy. So far as the grant of total waiver of electricity duty in terms of clause 9.3 of WBSSIS – 2008 is concerned, no serious challenge has been advanced before this Court, no infirmity has been pointed out, therefore, we find no reason to interfere in that part of the order of the learned Single Judge. Thus, no case is made out to interfere in the order of the learned Single Judge - Application dismissed.
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