2026 (3) TMI 1618 - HC - GST

GST budgetary support claim turns on parity verification for industrial units covered by the earlier clarification

GST budgetary support under Notification No. 20/2007 was discussed in relation to industrial units that commenced commercial production within the ... Entitlement to GST budgetary support benefits under Notification No. 20/2007 dated 25-04-2007, in light of the clarification dated 22-02-2023 and the earlier coordinate Bench decision - verification for parity with similarly situated units. GST budgetary support eligibility - Parity with similarly situated units - Verification of claim - HELD THAT: - The Court noted that the exemption notification applied to units which commenced commercial production not later than 31-03-2017, and that the petitioner's eligibility certificate showed commencement of commercial production after modernization with effect from 30-03-2017. It further noted that the coordinate Bench, on the basis of the clarification dated 22-02-2023, had already held that units falling within that clarification were to be treated as having availed the earlier exemption notification and were entitled to the consequential benefits. Since the respondents did not dispute that position, the Court did not undertake any fresh merits adjudication, but directed verification of whether the petitioner was similarly situated to the petitioners in M/s Sai Enterprises Vs. UoI & Ors. [2023 (10) TMI 1069 - GAUHATI HIGH COURT] and the analogous matters. [Paras 8] The respondents were directed to verify the petitioner's claim and, if the petitioner was found similarly situated to the petitioners in the coordinate Bench matters, to extend the same benefits. Final Conclusion: The writ petition was disposed of without a final merits determination of the petitioner's entitlement. The respondent authorities were directed to verify whether the petitioner stood on the same footing as the units covered by the coordinate Bench decision and, if so, to extend the corresponding benefits. Issues: Whether the petitioner was entitled to GST budgetary support benefits under Notification No. 20/2007 dated 25-04-2007, in light of the clarification dated 22-02-2023 and the earlier coordinate Bench decision, and whether the claim required verification for parity with similarly situated units.Analysis: The notification extended exemption-linked benefits to eligible industrial units that commenced commercial production within the stipulated period, and the petitioner's eligibility certificate showed commercial production from 30-03-2017 after modernization. The earlier coordinate Bench had treated the clarification dated 22-02-2023 as covering units that had availed the earlier exemption benefit, including those where the stage for cash payment of further taxes had not yet arisen. In view of the parties' consensus, the Court directed verification of the petitioner's claim and confined relief to cases where the petitioner is found to be similarly situated to the units covered by the earlier order.Conclusion: The petitioner was not granted an unconditional declaration of entitlement, but was entitled to verification and to extension of the same benefits if found similarly situated.