srk 1 wp-207-11 THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.207 OF 2011 M/s. Anand Distilleries Private Limited ... Petitioner Versus State of Maharashtra and others. ... Respondents Mr.A.A. Kumbhakoni with Ms. Komal Joshi and Mr. Aditya Mitle i/by M/s. Khaitan & Jayakar for the petitioner. Mr. R.P. Behere, Additional Government Pleader for respondent Nos.1 to 6 as well as for Sales Tax Commissioner. CORAM : MOHIT S. SHAH, C.J. & D.G. KARNIK, J. Thursday, March 24, 2011 P.C. Leave to add Sales Tax Commissioner. 2. Mr. R.P. Behere, Additional Government Pleader waives service for respondent Nos.1 to 6 as well as Sales Tax Commissioner. 3. Mr. A.A. Kumbhakoni, learned counsel for the petitioner M/s. Anand Distilleries Private Limited states that on account of the State Government not having released the amounts of benefit under the scheme of Financial Assistance to Grain Based Distilleries, and Integrated Units-2007 which is to the tune of about Rs.8,01,50,000/- upto January, 2011, the petitioner srk 2 wp-207-11 has been constrained to close down the factory. It is further submitted that the petitioner has taken loans from the banks/financial institutions and the petitioner is also not able to repay such loans on account of closure of the factory. It is submitted that if the amounts of benefit under the above scheme which are not disputed by the disputants are paid to the petitioner, the petitioner would restart the factory which would fetch the state exchequer a sum of Rs. 430/- per proof litre as excise duty. As against that, the incentive which the Government gives under the above Scheme of 2007 is only Rs.10/- per bulk litre. The learned counsel for the petitioner, therefore, submits that on account of the shortsightedness on the part of the respondent-authorities in not paying the petitioner an incentive of Rs.10/- per bulk litre for manufacturing grain based alcohol, the State Government is losing excise duty of Rs.430/- per proof litre. 2. Mr. Behere, learned Additional Government Pleader does not dispute that the above figure refers the amount of incentive benefit payable to the petitioner under the above Scheme but states that the required budget provision would be made in the supplementary budget provision for 2011-2012 and therefore, the payment will be made by the end of August, 2011 after its approval by the Legislature. 3. Since the State Government will be losing excise duty of Rs.430/- per proof litre as against the incentive benefit of only Rs.10/- per bulk litre, we see no justification for any delay on the part of the respondents in paying the incentive benefit which has been accruing from August, 2009, when the petitioner has already paid excise duty of Rs.250 crores on the grain based alcohol manufacturing and bottled by the petitioner. srk 3 wp-207-11 4. In view of the above, we direct the respondents to pay the petitioner a sum of Rs.8,01,50,000/- on/or before 15th April, 2011, in order to enable the petitioner to restart its factory. All the previous interim/ad-interim orders passed in this petition are vacated. 5. At this stage, the learned counsel for the petitioners submits that since the Government will pay the petitioners the aforesaid amount of incentive under the above scheme of 2007 by 15th April, 2011, the petitioner will be able to pay the dues of Value Added Tax with interest thereon within two weeks from the date of receipt of the incentive amount from the State Government. However, in the meantime, the petitioner's licence to run the factory will expire on 31st March, 2001. The petitioner will, of course, take all the necessary steps for getting the licence renewed before 31st March, 2011 but the petitioner is required to produce No Dues Certificate from the Sales Tax Department. However on account of non-payment of his dues before 31st March, 2011, the Sales Tax Department will not issue such No Dues Certificate. It is submitted that for no fault of the petitioner and only on account of the delay on the part of the Finance Ministry in releasing the amount of incentive, the petitioner will not be able to restart the factory unless this Court intervenes and issues appropriate directions to the State Government. 6. In view of the above, it is hereby directed that upon the petitioner filing an undertaking to this Court to the effect that within two weeks from the date of receiving the incentive amount from the State Government, the petitioner will clear the arrears of the VAT with interest thereon, (it will, however, be open to the petitioner to apply to the Sales Tax Department for waiver of penalty and for waiver of interest) the Sales Tax Department will srk 4 wp-207-11 issue No Dues Certificate to the petitioner within two days of the receipt of this order. 7. Petition stands disposed of in terms of the above directions and with clarification that previous ad-interim and interim orders are vacated. CHIEF JUSTICE D.G. KARNIK, J.