TaxTMI 
TaxTMI 
2021 (5) TMI 1077
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....t had installed capacity of 19915 cubic metres and the date of commencement of production was 16.09.2002. 3. The Government of India, Ministry of Industries had framed a Transport Subsidy Scheme under a notification dated 23.07.1971 (hereinafter to be referred to as the Scheme of 1971) which envisaged limited transport subsidy for the cost of transportation of raw materials and finished goods to manufacturing industrial units in the category of small scale industries which are located in certain specified areas including the North Eastern Region comprising of several north eastern states such as, Assam, Meghalaya, Nagaland, Manipur, Tripura and Union Territories of Arunachal Pradesh and Mizoram. Such transport subsidy would be available for initial period of 10 years from the date of commencement of production. By a subsequent notification dated 28.07.1993 this period of eligibility of subsidy was reduced to 5 years. 4. Though in the petition the petitioner has referred to several other subsidies declared by the Central Government such as, capital investment subsidy, interest subsidy etc. which the petitioner was entitled to but was not granted, before us learned counsel for the ....
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....ulfilled. For this purpose, a reference is made to the letter dated 07.12.2006 from the General Manager, District Industrial Centre, Kailashahar to the Director of Industries and Commerce which we have noted earlier. 9. The learned Single Judge by the impugned judgment dismissed the petition on the ground that the subsidy scheme envisaged transport subsidy on movement of raw materials only when it is brought from the States outside the North Eastern Region and in the present case the materials for stone crushing activity were extracted from within the State of Tripura itself. Relevant portion of the judgment reads as under: "8. Simply put, the Liberalized Transport Subsidy Scheme extracted above stipulates that transport subsidy @ 90% would become admissible on the movement of "Raw materials" from one State to another within the North Eastern Region and that the Transport Subsidy would, however, not be admissible for movement of „finished goods‟ even within the States of North Eastern Region. This plainly makes it clear that only the movements by train or road of those raw materials which are brought into the State of Tripura from the selected areas or otherwise are ....
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....r, subsequently the petitioner started undertaking only job work. The subsidy scheme would not cover a job work (both these objections have been raised by the respondents in the affidavit and argued before us); (ii) The movement of the raw material as well as the goods was within the State alone and, therefore, the transport subsidy was not available as per the scheme (this objection is recorded in the impugned judgment of the learned Single Judge); (iii) The petitioner was not engaged in manufacturing activity at all. Mere crushing of the boulders did not amount to manufacturing (this argument was advanced by the counsel for the Union of India). 11. We shall have to judge whether any of these objections are valid. In order to assist us, learned senior counsel Mr. Somik Deb for the appellant had submitted that the subsidy scheme did not envisage that the same is not available to a job worker or that the clearance of Pollution Control Board is necessary to claim the subsidy. In fact, such objection is an afterthought since the industrial department itself had certified that the unit was duly established and had commenced its manufacturing activity. He further submitted that the....
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....f Andaman and Nicobar Islands and Lakshadweep and the State of Sikkim. (iv) In the case of North-Eastern Region comprising the States of Assam, Meghalaya, Nagaland, Manipur, Tripura and the Union Territories of Arunachal Pradesh and Mizoram, the transport subsidy will be given on the transport costs between Siliguri and the location of the industrial unit in those States/Union Territories. While calculating the transport costs of raw materials the cost of movement by rail from Siliguri to the railway station nearest to the location of the industrial unit thereafter the cost of movement by road to the location of the industrial unit will be taken into account. Similarly while calculating the transport costs of finished goods the cost of movement by road from the location of industrial unit to the nearest railway station and thereafter the cost of movement by rail to Siliguri will be taken into account. In the case of North-Eastern Region, for raw materials moving entirely by road or other mode of transport, the transport cost will be limited to the amount which the industrial unit might have paid had the raw materials moved from Siliguri by rail up to the railway station nearest....
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....ase where the procurement of the raw material is from within the State itself and in the present case, the petitioner had according to the learned Single Judge procured such raw material from within the State only. With the first part of this proposition, we have no dispute, however, with respect to the later observation that the petitioner had procured the raw material only from within the State, we do not find any basis. The respondents have not raised any such objection. Though the petitioner who had made subsidy claims which were supported by the certificates of the Chartered Accountant certifying the movement of goods, has not produced such supporting documents, from the letter dated 07.12.2006 from the General Manager of District Industrial Centre, it does emerge that the petitioner used to bring raw materials from the State of Assam up to March, 2006. This objection of the learned Single Judge, therefore, appears to be factually incorrect. 15. However, this is not the end of the matter. Even going by the petitioner's claim that the boulders in the form of raw materials were procured from the neighbouring State of Assam, we do not find that the subsidy scheme covers such a s....