📢Himachal Pradesh HC Sets-Aside Denial of 'Budgetary Support Scheme' Benefit to Ultra Tech Cement; Remits Matter Ultra Tech Cement Ltd Vs. UOI

Facts of the Case
▪️ Assessee: Ultra Tech Cement Ltd, engaged in the manufacture of cement under Chapter 25 of the GST Tariff, with two manufacturing units in Himachal Pradesh - one at Village Baga and another at Village Pandiyana (Tikri), also referred to as Bagheri.
▪️ Claim: Ultra Tech Cement’s claim under the Budgetary Support Scheme (BSS) for its Bagheri unit was denied on the ground that there was a credit balance in the credit ledger related to another unit (Baga Cement Works) operating under the same GSTIN.
▪️ Appeal: Assessee filed an appeal against the denial of BSS for the quarters July to September 2017 and October to December 2017. The Commissioner (Appeals) had upheld the denial on the ground that it had no jurisdiction as the scheme is in the nature of a grant, not a refund.
▪️ Revenue’s Position: Revenue argued that ITC could have been utilized for payment of taxes for the eligible unit, thus denying the budgetary support.

Court Judgment

▪️ Denial of Budgetary Support for July to September 2017:

▪️HC noted that the balance lying in the ledger pertained to the Baga Cement Works unit and not to the eligible Bagheri unit.
▪️Revenue incorrectly held that ITC could have been utilized for the eligible unit, ignoring Para 9(iii) of the Circular dated November 27, 2017, which clarifies that credit balances of non-eligible