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TMI Blog2024 (6) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... ification on 05.10.2017 called "Scheme of Budgetary Support" 5. Three months after coming into force of the GST regime, the Central Government issued a Notification on 05.10.2017 called "Scheme of Budgetary Support" under the Goods and Services Tax Regime to the Units located in the States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim, through the Ministry of Commerce and Industry, Department of Industrial Policy and Promotion. 6. Prior to the introduction of the said scheme, there was in force the Central Excise Regime and under the said regime, Units located in the State of Himachal Pradesh were eligible to avail exemption from payment of Central Excise Duty in terms of area based exemptions under certain Excise Notifications issued under the Central Excise Act, 1944; and eligible Units were exempted from paying Central Excise Duty for a period of 10 years from the date of commencement of commercial production, provided such commercial production had commenced on or before 31.03.2010. 7. After coming into force of the GST Regime on 01.07.2017, there were some Units in the State of Himachal Pradesh which had residual period of exemption avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ID shall be endorsed on all the three copies of the application. (v) It shall be ensured by the jurisdictional Divisional Officer that record of registration is maintained against the sl.no. which is part of the unique ID. (vi) The second copy of the application after registration of the eligible Unit under an official communication shall be forwarded to the DDO of the Division for registration of the Unit under PFMS. This would ensure validation of the Bank Account details of the beneficiary. This exercise should be completed within 3 days of receipt of the copy of application by the DDO. (vii) The third copy of the application after registration shall be forwarded to the ADG, DG Audit, Delhi who in turn would be providing the details to programme division (PD) of DIPP in a complied manner. The DIPP on the basis of these details shall draw a programme for inspection of the eligible Unit by a team constituted by them. Jurisdictional Commissionerate of CGST shall provide necessary assistance in carrying out the inspection. Immediately after completion of inspection a copy of Inspection report would be forwarded to the Assistant/Deputy Commissioner having jurisdiction over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uarter, i.e. the period from 01.07.2017 to 30.09.2017, of Rs. 5,89,96,942/- in the office of the Deputy Commissioner, CGST, Boileauganj, Shimla (H.P.). 18. The petitioner clarified that the credit balance of Rs. 10,25,02,596/- lying in the Credit Ledger at the end of the quarter July to September, 2017, related to its sister Unit Baga Cement Works and not to it's Bagheri Unit and that the petitioner was eligible for budgetary support of CGST/IGST paid through cash ledger as per the prescribed format (Annexure P-9 dt. 16.07.2018). 19. Vide Order-in-Original no. 10/DC/R/UTC/SML/2018 dt. 27.07.2018 (Annexure P-2) issued by the Deputy Commissioner, CGST, Boileauganj (respondent no. 4), the Department, however, denied the benefit of budgetary support scheme to the petitioner on the ground that there is a credit balance of Rs. 10,25,02,596/- lying in the credit ledger at the end of the quarter July to September, 2017. The 4th respondent rejected the entire claim of Rs. 5,89,96,942/- in terms of Para 5.1 (b) of the Notification on the ground that there was closing CGST balance of Rs. 10,25,03,817/- in the credit ledger which could have been utilized for payment of taxes for the eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Circular No. 1060/09/2017-CX dated 27.11.2017 read with Notification F. No. 10(1)/2017-DBA-II/NER dated 5.10.2017 issued by the Ministry of Commerce and Industry, Department of Industrial Policy and Promotion; AND/OR iii) For issuance of a writ in the nature of mandamus directing the Respondent No. 4 to allow the Budgetary support claimed by petitioner along with interest in view of budgetary support scheme dated 5.10.2017." 26. Though counsel for the petitioner raised contentions on merits in view of the order which we are proposing to pass, i.e. remit the matter back to the 4th respondent, we do not wish to go into the merits of the claim of the petitioner. 27. The following are the reasons for the said remand. 28. As far as the Order-in-Original dt. 27.07.2018 passed by the 4th respondent is concerned, the petitioner's contention was that the budgetary scheme is qua the eligible Unit and not qua the GSTIN number; that the petitioner had two manufacturing Units registered under the same GSTIN, i.e. Bagheri Unit and Baga Unit, whereas, only one Bagheri Unit was an eligible Unit registered under the budgetary support scheme; and in spite of the petitioner's speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of hearing while deciding the claim for budgetary support for the 3rd quarter from 01.10.2017 to 31.12.2017. 34. The Jammu & Kashmir High Court in Dabur India Limited vs. Union of India & Anr. 2019 (9) TMI 1573, had held that the budgetary support scheme is governed by principles of natural justice and one such principle is the necessity of providing opportunity of hearing to the party who would suffer civil consequences. It held that principles of natural justice have to be read into the law considering the nature of duty to be performed by the respondent and that the scheme does not bar application of principles of natural justice. 35. Since the 4th respondent not only did not give any personal hearing to the petitioner but he also did not assign reasons for rejecting a portion of the claim for budgetary support, and appears to have adopted certain figures without putting them to the petitioner, the Order-in-Original dt. 20.08.2018 passed by the 4th respondent is also set aside and the matter is remitted back to the 4th respondent to the extent he had rejected the claim of the petitioner for grant of budgetary support for the 3rd quarter from 01.10.2017 to 31.12.2017. Conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X
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