Where appellant was given excess subsidy of 25 per cent under Rajasthan Investment Promotion Scheme-2003, appellant was directed to refund same with interest of 12 per cent per annum

  • Vide decision of Supreme Court of India in ultratech Cement limited vs. State of rajasthan.

Facts of the case:

  1. Apellant company was engaged in business of manufacturing and marketing of cement and allied products.
  2. Additional Chief Secretary (ACS) in revision order held that Kotputli Unit of company was entitled to Capital Investment Subsidy only to extent of 50 per cent of payable and deposited Sales Tax/VAT and not to extent of 75 per cent under Rajasthan Investment Promotion Scheme-2003, as availed by it pursuant to Entitlement Certificates erroneously issued by State Level Screening Committee (SLSC).
  3. SLSC was directed to issue a new Entitlement Certificate for subsidy to limit of 50 per cent of total tax to said company and company was directed to refund amount of subsidy availed in excess of 50 per cent of payable and deposited tax together with interest at rate of 18 per cent per annum.
  4. High Court by impugned order dismissed writ petition filed by appellants while upholding order passed by ACS.


The Honorable Supreme Court of India held the case as follows:

  1. this appeal is partly allowed to the extent and in the manner indicated.

The impugned order of the High Court, upholding the order passed by the Additional Chief Secretary, Finance Department, Government of Rajasthan, Jaipur is affirmed but with the modification that the respondents shall be entitled to recover interest at the rate of 12% per annum from the date of availing of excessive subsidy (25%) by the appellants until payment/recovery.


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