Budgetary support refund must follow the scheme's fixed calculation method; unexplained partial rejection is unsustainable.

An eligible industrial unit under the budgetary support scheme was entitled to reimbursement only in accordance with the scheme's fixed calculation method, which provided for 58% of CGST paid through the cash ledger and 29% of IGST after input tax credit utilisation. Because eligibility was undisputed and the respondents had already sanctioned most of the claim, the unexplained rejection of the balance refund could not be sustained. The scheme required a reasoned computation based on its express terms, and an undisclosed or unsupported calculation could not curtail the admissible refund. The withheld amounts were therefore liable to be released.

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Issues: Whether an eligible industrial unit under the budgetary support scheme was entitled to full refund of the balance CGST claimed for the relevant quarters and whether the partial rejection of the refund claims, without disclosing the basis of computation, was sustainable.

Analysis: The budgetary support scheme dated 05.10.2017 provided for reimbursement of 58% of CGST paid through the cash ledger and 29% of IGST so paid, after utilisation of input tax credit, with the amount being worked out on the basis of the value addition framework continued from the earlier exemption notifications. The eligibility of the unit was not in dispute and the respondents had already sanctioned the major part of the claimed amount. The only controversy was the rejection of the balance without any disclosed calculation or reason. On a proper reading of the scheme, the amount payable had to be determined strictly in accordance with its terms, and the respondents' unexplained computation could not justify curtailment of the admissible refund.

Conclusion: The partial rejection of the refund claims was unsustainable. The petitioner was entitled to the full claimed budgetary support for the relevant quarters, and the withheld amounts were liable to be released.

Final Conclusion: The writ petition succeeded and the impugned refusal to sanction the balance refund was set aside, with directions to release the inadmissible amounts.

Ratio Decidendi: Where a budgetary support scheme prescribes a fixed method of calculation for eligible units, the refund cannot be curtailed by an undisclosed or unsupported computation, and any partial rejection must be justified by the scheme's express terms and a reasoned order.

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