FACTS OF THE CASE
- The petitioner was earlier named as M/S Jindal Drugs Private Ltd., (Cocoa Division) registered under Central Excise Department. After the implementation of GST Act 2019, petitioner got itself registered under the new regime.
- After the implementation of GST Act 2019, all area-based exemptions were rescinded which caused financial hardships to the industries availing the exceptions.
- So, the government came up with Budgetary Support Scheme for eligible units in lieu of exemptions. The unit of petitioner fell under the category.
- The petitioner filed its claim under the scheme and the competent authority sanctioned the same but could not be released in time due to unavailability of the funds
- Aggrieved by which, petitioner filed the present petition.
OBSERVATIONS OF THE COURT
- The court dismissed the present petition filed by the petitioner.
- The court observed that the during the pendency of the petition, the entire amount payable under the scheme has been paid to the petitioner.
- Court held that the Budgetary scheme was introduced by the government with the purpose of providing financial assistance through incentives/ concession to the industries who had to suffer due to the implementation of a new act.
- No unit could lay the claim to the payment of the amount as a matter of the right as this is not in the nature of the scheme.
- Court held that it is not available for the petitioners to claim interest for each day’s delay that occurs in the disbursement of the sanctioned amount.
- Court observed that there is no provision in the scheme which provides for the payment of interest in case of any delay in actual release of the sanctioned amount.