Tax exemption by way of budgetary support—–—- The petitioner sought quashing of the order dated 26.08.2020, whereby the respondents have declined part of his claim for budgetary support for the period January to March, 2020. The petitioner was entitled to exemption in Tax/Central Excise for a period of 10 years from the date of commencement of business/commercial production as per the earlier scheme. After the GST, the dealers/manufacturers were permitted to avail the tax exemption by way of budgetary support. Accordingly, the petitioner applied for the grant of budgetary support for a sum of Rs.93,29,509/-. The respondents accepted the claim for the grant of Rs. 68,67,539/- but rejected the claim for budgetary support for the balance amount of Rs. 24,61,920/- and no reason has been assigned for rejecting the same. The court observed that no reason has been assigned anywhere as to why the claim in respect of the balance amount has been rejected. The ineligibility of the petitioner to receive the budgetary support has been decided on the basis of the office memorandum dated 26.07.202, which was not in existence on the date on which the impugned order was passed i.e. on 26.08.2020. The impugned order dated 26.08.2020 is unsustainable in law and that the respondents fell clearly in error in declining the budgetary support for part of the amount for the period January to March, 2020.

Held that:- The Hon’ble High Court accordingly disposed the petition.