Incentive scheme benefits cannot be denied merely because VAT was replaced by GST where the scheme anticipates legal change.

The West Bengal State Support for Industries Scheme, 2008 was construed as accommodating future changes in tax law because Clause 19.2 contemplated replacement of the West Bengal Value Added Tax regime by another enactment, and Clause 13.7 allowed adjustment of benefits from other sources against the same investment. On that basis, refusal to release the sanctioned incentive solely because the Scheme was said not to be GST compliant was unsupported by the Scheme's terms. The petitioners were therefore entitled to disbursement of the incentive, subject to fulfilment of the remaining eligibility conditions and independent verification by the respondents.

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Issues: Whether the petitioners were entitled to disbursement of incentive under the West Bengal State Support for Industries Scheme, 2008 despite the transition from the VAT regime to the GST regime.

Analysis: The petitioners had already been granted registrations under the Scheme and a quantified sanction for fixed capital investment subsidy, with only release of the incentive remaining upon production of the certificate of commencement of commercial production. Clause 13.7 contemplated adjustment of benefits received from other sources against the same investment, while Clause 19.2 provided for the Scheme to adapt itself to future changes in law and to replacement of the West Bengal Value Added Tax, 2003 by any other enactment. On that basis, the refusal to release incentive on the ground that the Scheme was not GST compliant was held to be unsupported by the Scheme itself, particularly since the VAT regime had been replaced by GST.

Conclusion: The petitioners were held entitled to disbursement of the incentive under the 2008 Scheme, subject to satisfaction of the remaining eligibility requirements and independent verification by the respondents.

Ratio Decidendi: Where an incentive scheme expressly provides for adaptation to future changes in law and replacement of the existing tax regime, the benefit cannot be denied merely because the earlier tax regime has been substituted by GST.

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