Orissa HC: Retrospective withdrawal of SGST Incentive for Cement Units is Unconstitutional

Orissa HC holds that the State cannot retrospectively withdraw SGST reimbursement benefits from cement manufacturing and grinding units under IPR 2015 with effect from 1 July 2017, through a subsequent amendment dated 18 August 2020, without sufficient justification. HC observes that although the State may modify its industrial incentive policy prospectively, financial implications arising from the introduction of GST do not justify retrospectively withdrawing benefits from units that had already undertaken substantial investments in reliance on the existing policy. It is further held by the Court that the retrospective exclusion is arbitrary and contrary to the principles of promissory estoppel and legitimate expectation. HC also recognised deemed approval of the petitioners' application for provisional Priority Sector status under Section 11 of the Orissa Industries (Facilitation) Act, 2004, owing to the authorities' failure to decide it within the prescribed period. Accordingly, HC quashes the retrospective exclusion, directs that the application be treated as deemed approved and orders determination and release of eligible SGST reimbursement along with applicable interest within four weeks. 

JSW Cement Orissa HC.pdf