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of <h1>Petition allowed; disburse sanctioned incentive under State Support for Industries Scheme 2008 per Clauses 13.7 and 19.2</h1> <h3>PRIME COLD STORES PVT. LTD. AND ANR. Versus THE STATE OF WEST BENGAL AND ORS.</h3> HC allowed the petition and directed disbursement of the sanctioned incentive under the West Bengal State Support for Industries Scheme, 2008. The ... Ineligible for disbursement and sanction of incentive under West Bengal State Support for Industries Scheme, 2008 - HELD THAT:- The admitted fact is that the petitioners have not only been granted two registrations in levels I and II of the said Scheme but have also been granted a letter of sanction on 7th June, 2016 with regard to fixed capital investment subsidy under the 2008 Scheme. The sanction has been quantified in monetary terms – Rs.84.31 lakhs. Under the Scheme, the only stage left for the incentive is release of the incentive on production of the certificate on commencement of commercial production. The petitioners have produced the concerned certificate. This document is also on record. Clause 13.7 provides that benefit from any other sources enjoyed by such units against the same investment shall be adjusted while determining the entitlement of such units to the benefits under the Scheme. Clause 19.2 of the Scheme provides that the Scheme shall adapt itself to future changes in law and also in the event the West Bengal Value Added Tax, 2003 is replaced by any other Act. The reason given by the WBIDC of the Scheme not being GST compliant is hence without any basis and falls short of the intent of the Scheme. The respondents should have been ready with an alternative since the VAT regime was replaced by the GST regime on and from 1st July, 2017. The respondents hence cannot have any further objection to disbursement of the incentive to the petitioners under the 2008 Scheme - Petition allowed. The petitioning cold storage unit, covered as a service-related entity under The West Bengal State Support for Industries Scheme, 2008, challenges a WBIDC order (10.02.2022) declaring it ineligible for the sanctioned fixed capital investment subsidy of Rs.84.31 lakhs (sanction letter dated 7.6.2016). The only remaining stage was release of incentive upon production of a certificate of commencement of commercial production, which the petitioners produced. The Scheme's clauses were applied: 'benefit from any other sources enjoyed by such units against the same investment shall be adjusted while determining the entitlement,' and 'the Scheme shall adapt itself to future changes in law' (Clause 13.7 and Clause 19.2). The WBIDC's objection that the Scheme is not GST-compliant is held to be 'without any basis' and contrary to the Scheme's intent; respondents should have provided an alternative after GST replaced VAT on 1.7.2017. WPO/2308/2022 is allowed; respondents directed to disburse the incentive after independent assessment of eligibility and fulfillment of all Scheme terms, endeavoring to act within twelve weeks.
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