Sikkim High Court
M/S Torrent Pharmaceuticals Ltd. (Unit ... vs Union Of India And Ors on 2 April, 2025
Author: Bhaskar Raj Pradhan
Bench: Bhaskar Raj Pradhan
THE HIGH COURT OF SIKKIM: GANGTOK
(Civil Extra Ordinary Jurisdiction)
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SINGLE BENCH: THE HON'BLE MR. JUSTICE BHASKAR RAJ PRADHAN, JUDGE
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W.P. (C) No. 55 of 2023
M/s Torrent Pharmaceuticals Ltd. (Unit-III),
(Erstwhile Unichem Laboratories Ltd.),
Represented by Assistant Manager Finance,
Sanjay Singh,
N.H. No.10, Bagheykhola,
Majhitar, East Sikkim, 737136.
..... Petitioner
Versus
1. Union of India,
Through Secretary,
Department of Revenue, Ministry of Finance,
North Block, New Delhi-110001.
2. Commissioner of CGST, Siliguri,
Gangtok Division,
C.R. Building, Haren Mukherjee Road,
Hakimpara, Siliguri,
West Bengal-734001.
3. Under Secretary, Department for Promotion
of Industry and Internal Trade,
(DPIIT), Udyog Bhawan, New Delhi-110001.
4. Assistant Commissioner, CGST,
Gangtok Division, Indira Byepass,
Near District Court,
Sichey, Gangtok, East Sikkim-7371001.
..... Respondents
Application under Article 226 of the Constitution of India.
Appearance:
Mr. V. Sridharan, Senior Advocate with Mr. Rahul
Tangi, Advocate. (through V.C.). Ms. Gita Bista, Ms. Anu
2
W.P. (C) No. 55 of 2023
M/s Torrent Pharmaceuticals Ltd.. vs. Union of India & Ors.
Sharma, Ms. Udita Saraf and Ms. Anusha Basnet,
Advocates for the Petitioner.
Ms. Sangita Pradhan, Deputy Solicitor General of India
along with Ms. Natasha Pradhan, Advocate for the
Respondents.
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Date of Hearing : 02.04.2025
Date of Order : 02.04.2025
ORDER (ORAL)
Bhaskar Raj Pradhan, J.
1. M/s Torrent Pharmaceuticals Limited (Unit III)
filed the present writ petition challenging order-in-
original No.02/BS/GTK/Torrent Pharma-III/GTK-
DIV/2023-24 dated 01.11.2023 passed by the learned
Assistant Commissioner of CGST, Gangtok Division
directing recovery of refund amounting to
Rs.12,18,27,592/- along with interest @ 15% per
annum in terms of paragraph 9 of the Budgetary
Support Scheme read with affidavit-cum-indemnity
bond dated 23.01.2018.
2. It was the case of the petitioner that they had
entered into an agreement to acquire Unichem
Laboratories business of India and Nepal, as a going
concern on slump sale basis. On account of such
M/s Torrent Pharmaceuticals Ltd.. vs. Union of India & Ors.
acquisition, GSTIN of the petitioner was amended and
the Sikkim unit of Unichem Laboratories located at
NH-31A (NH-10) Village Bhagheykhola, P.O. Majhitar,
Rangpo, East District, Sikkim was added as additional
place of business in petitioner's GST registration
No.11AAACT5456A1ZY.
3. According to the petitioner this transfer of
ownership was duly communicated to the
Superintendent of CGST, Range II, Div, Gangtok vide
letters dated 07.12.2017 and 14.12.2017.
4. Thereafter, on 19.01.2018 the petitioner
submitted an application before the respondent no.4
for registration of Unit III under Budgetary Support
Scheme along with Affidavit-cum-Indemnity bond for
residual period i.e. 14.12.2017 to 28.05.2020.
5. Certain queries were raised by the respondent
no.4 and after receipt of the answers from the
petitioner, the petitioner was allotted Unique ID
No.45/Gangtok/Siliguri/11AAACT5456A1ZY under
BSS vide letter bearing No.C.No.V(19)50/BS/Torrent-
III/GTK-Divn/2017-18/1077 dated 30.05.2018.
M/s Torrent Pharmaceuticals Ltd.. vs. Union of India & Ors.
6. Eleven claims were filed thereafter for the
period October 2017 to June 2021 for refund
amounting to Rs.12,18,27,592/-. After verification the
petitioner was sanctioned budgetary support
amounting to Rs.12,18,27,592/- for the period October
2017 to June 2021 as claimed.
7. However, recovery notice bearing
No.SBS/03/Torrent Unit-3/Gtk-Div/2022-23 vide
letter bearing C. No. V(18)16/GST/SBS/
Recovery/Torrent-III/Gtk-Div/2022-23/1582 dated
29.08.2022 was issued upon the petitioner, directing
the petitioner to reverse entire budgetary support
amounting to Rs.12,18,27,592/- along with interest @
15% per annum in terms of paragraph 9.1 of the
Budgetary Support Scheme and affidavit-cum-
indemnity bond dated 23.01.2018 as affirmed by the
petitioner.
8. The recovery notice was issued on the ground
that since there is a change in ownership in respect of
the concerned Unit, therefore, such Unit is not eligible
under the Budgetary Support Scheme. Reliance was
placed on the clarification issued by the Department
for Promotion of Industry and Internal Trade (DPIIT) via
M/s Torrent Pharmaceuticals Ltd.. vs. Union of India & Ors.
Office Memorandum bearing F.No.10/1/2021-GSTSS
dated 31.03.2022 which referred to another Office
Memorandum dated 20.10.2021.
9. After receipt of the response from the
petitioner including details submissions and personal
hearing the respondent no.4 passed the impugned
order confirming the demand upon the petitioner on
various findings, including that this Court's had vide
Order dated 12.09.2023 dealt with identical issue in
W.P. (C) No.20 of 2022 Zydus Wellness Products
Limited vs. Union of India & Ors.; and W.P. (C)
No.27 of 2022 Alkem Laboratories Limited vs.
Union of India & Ors.; wherein it was held that the
Unit which had undergone change of ownership would
not be entitled to benefit under the Budgetary Support
Scheme.
10. Heard Mr. V. Sridharan, learned Senior
Counsel for the petitioner as well as learned Deputy
Solicitor General of India for respondents. The learned
Senior Counsel submits that the two judgments passed
by this Court have been set aside by the Division
Bench in Writ Appeal No. 09 of 2023 and Writ Appeal
No. 10 of 2023 vide judgment dated 13.12.2024 and in
M/s Torrent Pharmaceuticals Ltd.. vs. Union of India & Ors.
terms thereof the present writ petition ought to be
allowed on this ground alone leaving all other
questions open.
11. The learned Deputy Solicitor General of India
does not distinguish the present case from the facts of
the case in Writ Appeal No. 09 of 2023 and Writ Appeal
No. 10 of 2023 decided by the Division Bench of this
Court on 13.12.2024. She however, submits that the
respondents is on the verge of filing a Special Leave
Petition (SLP) before the Supreme Court against the
above judgment dated 13.12.2024 in Writ Appeal No.
09 of 2023 and Writ Appeal No. 10 of 2023 and
therefore, the matter could await the decision of the
Supreme Court in the proposed SLP.
12. This Court is unable to agree to the
submissions made by the learned Deputy Solicitor
General of India. If the judgment dated 13.12.2024
passed by the Division Bench of this Court in Writ
Appeal Nos. 09 of 2023 and 10 of 2023 squarely covers
the present case it is binding on this Court.
13. In such view of the matter the writ petition is
allowed, leaving other questions open as fairly
suggested by the learned Senior Counsel for the
M/s Torrent Pharmaceuticals Ltd.. vs. Union of India & Ors.
petitioner. The writ petition is accordingly disposed
along with the interim application.
( Bhaskar Raj Pradhan )
Judge
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