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2021 (5) TMI 1077 - HC - Indian LawsNon-granting of the transport subsidy - claiming benefit of transport subsidy at prescribed rates with interest. Case of the petitioner is that its unit fulfilled all the requirements of grant of transport subsidy and for which all the documents were supplied to the department despite which such subsidy was not granted and on account of which the petitioner was unable to repay its dues to the secured creditors and faced bankruptcy. HELD THAT:- A new industrial unit is defined as to mean an industrial unit which has set up its manufacturing capacity and comes into production on or after the date of commencement of the scheme. It may be noted that the scheme was brought into effect from 15.07.1971. The term “selected area” would mean several regions and States specified therein including the North Eastern region comprising of the State of Assam, Meghalaya, Manipur, Nagaland and Tripura and Union Territories of Arunachal Pradesh and Mizoram. Paragraph-6 of the scheme envisages grant of transport subsidy to the industrial unit located in the selected areas in respect of raw materials which are brought into and finished goods which are taken out of such areas. However, industrial units will not be eligible for transport subsidy for internal movement of raw materials and finished goods within such areas. The eligibility period for claiming subsidy may be 5 years, the scheme nowhere provides that only if a new industrial unit continues such manufacturing activity for a period of 5 years that it can claim the transport subsidy. Therefore, even if, as pointed out by the respondents, the petitioner at some later point of time after commencing its production got engaged into the same activity as a job worker, this would not amount to breach of any of the eligibility conditions of the scheme. Transport subsidy would not be available for movement of raw materials as also finished goods as long as the movement thereof is confined between two locations both of which are situated in the North Eastern region. In the present case, even going by the case of the petitioner the raw material was procured from Assam which forms part of the North Eastern region for the purpose of the said scheme. Appeal dismissed.
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