srk 1 wp-2285.sxw THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.2285 OF 2011 M/s. Grainotch Industries 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. Grainotch Industries 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.5,54,90,000/- upto February, 2011, the petitioner would have no other alternative to close down the factory. It is further submitted that the petitioner has taken loans from the banks/financial institutions and the petitioner will also not be able to repay such loans, if the factory will be closed down. It is submitted that if the amounts of benefit under the above srk 2 wp-2285.sxw scheme which are not disputed by the disputants are paid to the petitioner, the petitioner would be able to continue to run 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 will be losing excise duty of Rs. 430/- per proof litre. 4. 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. 5 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 substantial excise duty has been paid on the grain based alcohol manufacturing and its bottling. 6. In view of the above, we direct the respondents to pay the petitioner a sum of Rs.5,54,90,000/- on/or before 15th April, 2011, in order to enable the petitioner to continue to run its factory. srk 3 wp-2285.sxw All the previous interim/ad-interim orders passed in this petition are vacated. 7. 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 continue to run the factory unless this Court intervenes and issues appropriate directions to the State Government. 8 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 issue No Dues Certificate to the petitioner within two days of the receipt of this order. srk 4 wp-2285.sxw 9. Petition stands disposed of in terms of the above directions and with clarification that previous ad-interim and interim orders are vacated. Parties to act on ordinary copy of this order duly authenticated by the Registry. CHIEF JUSTICE D.G. KARNIK, J.