Transport subsidy claims must be assessed on actual movement of goods, not later closure of the industrial unit.

Transport subsidy claims under the Transport Subsidy Scheme, 1971 cannot be rejected merely because the industrial unit was found closed at a later date if the claims relate to earlier periods and had already been verified and forwarded. The controlling enquiry is whether raw materials were actually brought into, and finished goods taken out of, the notified area in accordance with the scheme conditions. Claims must be reconsidered on the basis of the materials placed before the committee, and the claimant should be given an opportunity to explain any doubtful aspect. Later closure of the unit does not, by itself, defeat earlier subsidy claims.

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Issues: Whether the rejection of transport subsidy claims solely because the industrial unit was found closed in January 2018 was sustainable when the claims related to earlier periods and had already been verified and forwarded; whether the claims required reconsideration on the basis of actual transport of raw materials and finished goods under the Transport Subsidy Scheme, 1971.

Analysis: The claims had been submitted for periods long prior to the alleged closure of the unit and had been duly verified and forwarded by the departmental authorities. The scheme required scrutiny of whether the raw materials were brought into, and finished goods were taken out of, the notified area, and the committee was to decide claims on the basis of the scheme conditions and the materials placed before it. The later closure of the unit in 2018 could not, by itself, negate claims relating to earlier periods. The proper enquiry was whether the subsidy-claimed transactions had in fact occurred within the framework of the scheme, and the claimant was entitled to an opportunity to explain any doubtful aspect.

Conclusion: The rejection of the claims solely on the ground that the unit was closed from January 2018 was unsustainable. The claims were required to be reconsidered by the State Level Committee on the basis of the Transport Subsidy Scheme, 1971 and the actual transportation of raw materials and finished goods.

Ratio Decidendi: A claim for transport subsidy cannot be rejected merely because the industrial unit was found closed at a later point in time if the claims pertain to earlier periods and the determinative question under the scheme is whether the subsidised transport activity actually occurred.

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