w w w . L a w y e r S e r v i c e s . i n



M/s. Sun Pharma Laboratories Limited v/s Union of India & Others


Company & Directors' Information:- SUN PHARMA LABORATORIES LIMITED [Active] CIN = U25200MH1997PLC240268

Company & Directors' Information:- J F LABORATORIES LIMITED [Under Liquidation] CIN = U24232MH1988PTC049457

Company & Directors' Information:- K D L PHARMA LIMITED [Under Liquidation] CIN = U24231WB1989PLC047198

Company & Directors' Information:- R R G LABORATORIES LIMITED [Strike Off] CIN = U24230DL1984PLC018691

Company & Directors' Information:- S R LABORATORIES PRIVATE LIMITED [Active] CIN = U24232TG2005PTC047885

Company & Directors' Information:- M S LABORATORIES LIMITED [Strike Off] CIN = U24100DL1993PLC051613

Company & Directors' Information:- R S M PHARMA PRIVATE LIMITED [Active] CIN = U85110KA1989PTC009974

Company & Directors' Information:- J P N PHARMA PRIVATE LIMITED [Active] CIN = U24230MH2004PTC145446

Company & Directors' Information:- U S PHARMA (INDIA) PRIVATE LIMITED [Active] CIN = U24230MH2003PTC140514

Company & Directors' Information:- V V L PHARMA PRIVATE LIMITED [Active] CIN = U24230MH2006PTC160047

Company & Directors' Information:- B R LABORATORIES LIMITED [Active] CIN = U23209GJ1994PLC022124

Company & Directors' Information:- R K G PHARMA PVT LTD [Active] CIN = U74899DL1969PTC005111

Company & Directors' Information:- B M K LABORATORIES PRIVATE LIMITED [Amalgamated] CIN = U99999MH1978PTC020294

Company & Directors' Information:- J P LABORATORIES PRIVATE LIMITED [Active] CIN = U73100PN1998PTC012528

Company & Directors' Information:- I G PHARMA LIMITED [Active] CIN = U24232DL2005PLC137560

Company & Directors' Information:- P & B LABORATORIES LIMITED [Active] CIN = U24110MH1964PLC013023

Company & Directors' Information:- D L PHARMA PRIVATE LIMITED [Strike Off] CIN = U24230TG1996PTC023180

Company & Directors' Information:- D I LABORATORIES LTD [Active] CIN = U24239WB1986PLC041034

Company & Directors' Information:- A G L PHARMA PRIVATE LIMITED [Active] CIN = U24232TN2006PTC060592

Company & Directors' Information:- M. R. LABORATORIES PRIVATE LIMITED [Active] CIN = U24239TG2006PTC051263

Company & Directors' Information:- N B LABORATORIES PRIVATE LIMITED [Active] CIN = U24295MH1998PTC117004

Company & Directors' Information:- M R PHARMA PRIVATE LIMITED [Active] CIN = U24230MH1996PTC100199

Company & Directors' Information:- M C W PHARMA PVT LTD [Active] CIN = U24232MP1988PTC004693

Company & Directors' Information:- SUN LABORATORIES PRIVATE LIMITED [Active] CIN = U24231UP1988PTC009776

Company & Directors' Information:- A B PHARMA PRIVATE LIMITED [Strike Off] CIN = U74899DL1987PTC028777

Company & Directors' Information:- SUN PVT LTD [Active] CIN = U24246RJ1984PTC003093

Company & Directors' Information:- G SUN INDIA PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC071425

Company & Directors' Information:- A N LABORATORIES PRIVATE LIMITED [Active] CIN = U85191MH2011PTC223368

Company & Directors' Information:- N B PHARMA PRIVATE LIMITED [Active] CIN = U24239HR2002PTC034813

Company & Directors' Information:- G AND G PHARMA (INDIA) LIMITED [Active] CIN = U74899DL1995PLC070349

Company & Directors' Information:- B L PHARMA LIMITED [Active] CIN = U24230TG1998PLC029483

Company & Directors' Information:- Y L PHARMA PRIVATE LIMITED [Active] CIN = U24230HP2021PTC008443

Company & Directors' Information:- P R P PHARMA LIMITED [Strike Off] CIN = U24233DL2004PLC127606

Company & Directors' Information:- P C LABORATORIES PRIVATE LIMITED [Active] CIN = U24231BR1972PTC000950

Company & Directors' Information:- A D PHARMA PRIVATE LIMITED [Strike Off] CIN = U74899DL1984PTC017927

Company & Directors' Information:- M B AND K PHARMA PRIVATE LIMITED [Active] CIN = U85110UP1993PTC015566

Company & Directors' Information:- UNION PHARMA PVT LTD [Strike Off] CIN = U24232OR1986PTC001695

Company & Directors' Information:- P C LABORATORIES PRIVATE LIMITED [Not available for efiling] CIN = U24231BR1973PTC000930

Company & Directors' Information:- U. D. LABORATORIES PRIVATE LIMITED [Active] CIN = U85100WB2007PTC115385

Company & Directors' Information:- D R L PHARMA PRIVATE LIMITED [Active] CIN = U74900DL2009PTC194144

Company & Directors' Information:- I PHARMA PRIVATE LIMITED [Strike Off] CIN = U24232KA2012PTC066464

Company & Directors' Information:- C & G PHARMA PRIVATE LIMITED [Strike Off] CIN = U24232KL2007PTC020840

Company & Directors' Information:- S D H PHARMA PRIVATE LIMITED [Active] CIN = U24100AP2021PTC118446

Company & Directors' Information:- S K PHARMA PVT LTD [Strike Off] CIN = U24200TG1988PTC008219

Company & Directors' Information:- I B PHARMA PRIVATE LIMITED [Active] CIN = U51397DL2007PTC166799

Company & Directors' Information:- J B K SUN PHARMA INDIA PRIVATE LIMITED [Active] CIN = U24231DL2002PTC115355

Company & Directors' Information:- J B LABORATORIES PVT LTD [Active] CIN = U24232PB1993PTC013762

Company & Directors' Information:- G B PHARMA LIMITED [Under Process of Striking Off] CIN = U24231TN2004PLC053082

Company & Directors' Information:- G R PHARMA PRIVATE LIMITED [Active] CIN = U85300MH2014PTC251911

Company & Directors' Information:- S B PHARMA PVT LTD [Strike Off] CIN = U74899DL1984PTC018041

Company & Directors' Information:- M S G PHARMA INDIA PRIVATE LIMITED [Active] CIN = U51109DL1998PTC093237

Company & Directors' Information:- P S A PHARMA PRIVATE LIMITED [Active] CIN = U74899DL1987PTC026593

Company & Directors' Information:- G D H PHARMA PRIVATE LIMITED [Active] CIN = U74899DL2000PTC105701

Company & Directors' Information:- G S LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U24231UP1999PTC024990

Company & Directors' Information:- M B LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U24231DL1999PTC098347

Company & Directors' Information:- G. V. PHARMA (INDIA) PRIVATE LIMITED [Strike Off] CIN = U85100TG2010PTC071776

Company & Directors' Information:- P C INDIA PHARMA PRIVATE LIMITED [Strike Off] CIN = U24230MH2000PTC129963

Company & Directors' Information:- C T I L PHARMA PRIVATE LIMITED [Strike Off] CIN = U24230MH2005PTC157982

Company & Directors' Information:- M P PHARMA PRIVATE LIMITED [Strike Off] CIN = U51397MH2004PTC144622

Company & Directors' Information:- B L B LABORATORIES PVT LTD [Strike Off] CIN = U74999MH1986PTC038541

Company & Directors' Information:- J B M PHARMA PRIVATE LIMITED [Strike Off] CIN = U24231TG2001PTC037890

Company & Directors' Information:- A AND N LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U24239TG1985PTC005901

Company & Directors' Information:- J. M .LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U85110DL1994PTC061158

Company & Directors' Information:- SUN LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U24114MH1997PTC111798

Company & Directors' Information:- R M PHARMA PVT LTD [Active] CIN = U24230AP1986PTC006128

Company & Directors' Information:- B M K LABORATORIES PRIVATE LIMITED [Amalgamated] CIN = U36912MH2011PTC220030

Company & Directors' Information:- SUN PHARMA PVT LTD [Strike Off] CIN = U24231HR1984PTC017474

Company & Directors' Information:- SUN LABORATORIES PVT LTD [Strike Off] CIN = U24234OR1986PTC001710

Company & Directors' Information:- S G K PHARMA PRIVATE LIMITED [Active] CIN = U52311UP2021PTC143177

Company & Directors' Information:- A S A PHARMA PVT. LTD. [Strike Off] CIN = U24231HR2001PTC034701

Company & Directors' Information:- F PHARMA PRIVATE LIMITED [Strike Off] CIN = U24239DL2003PTC120158

Company & Directors' Information:- A H LABORATORIES P LTD [Strike Off] CIN = U24232PB1990PTC010830

Company & Directors' Information:- A P LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U24233UP1974PTC003855

Company & Directors' Information:- M I PHARMA PRIVATE LIMITED [Active] CIN = U24239MH2009PTC190502

Company & Directors' Information:- S V J PHARMA (INDIA) PRIVATE LIMITED [Strike Off] CIN = U24297MH2013PTC245885

Company & Directors' Information:- S G A PHARMA PRIVATE LIMITED [Strike Off] CIN = U51109MH2013PTC242911

Company & Directors' Information:- F. D. I. PHARMA PRIVATE LIMITED [Strike Off] CIN = U74120MH2013PTC240347

Company & Directors' Information:- B N L PHARMA PRIVATE LIMITED [Strike Off] CIN = U24239TG2003PTC040355

Company & Directors' Information:- B P N PHARMA PRIVATE LIMITED [Strike Off] CIN = U51397UP2003PTC028134

Company & Directors' Information:- S P D PHARMA PRIVATE LIMITED [Active] CIN = U52100UP2015PTC074941

Company & Directors' Information:- D S LABORATORIES PRIVATE LIMITED [Active] CIN = U85100WB2013PTC192872

Company & Directors' Information:- D M PHARMA PRIVATE LIMITED [Active] CIN = U33119CH2012PTC033815

Company & Directors' Information:- T S PHARMA PRIVATE LIMITED [Strike Off] CIN = U24100DL2011PTC226063

Company & Directors' Information:- R S V PHARMA PRIVATE LIMITED [Strike Off] CIN = U24232DL2009PTC186739

Company & Directors' Information:- S R J PHARMA PRIVATE LIMITED [Strike Off] CIN = U24239DL2004PTC124535

Company & Directors' Information:- P K LABORATORIES PRIVATE LIMITED [Active] CIN = U24239DL2004PTC127774

Company & Directors' Information:- J B J PHARMA PRIVATE LIMITED [Active] CIN = U74899DL2001PTC109186

Company & Directors' Information:- G S S PHARMA PRIVATE LIMITED [Active] CIN = U51102KA2015PTC082095

Company & Directors' Information:- V B LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U24232GJ2013PTC077087

Company & Directors' Information:- L T & L PHARMA PRIVATE LIMITED [Active] CIN = U01132GJ2013PTC077595

Company & Directors' Information:- V 4 U PHARMA PRIVATE LIMITED [Strike Off] CIN = U51397KL2012PTC031740

Company & Directors' Information:- J S M PHARMA PRIVATE LIMITED [Active] CIN = U51397KL2014PTC037674

Company & Directors' Information:- R P PHARMA INDIA PRIVATE LIMITED [Active] CIN = U24290GJ2021PTC121186

Company & Directors' Information:- S I PHARMA PRIVATE LIMITED [Active] CIN = U24230MH2021PTC368265

Company & Directors' Information:- K SUN LABORATORIES PRIVATE LIMITED [Active] CIN = U74999PN2021PTC204996

Company & Directors' Information:- INDIA PHARMA LABORATORIES LIMITED [Strike Off] CIN = U99999MH1951PLC008390

Company & Directors' Information:- A AND V LABORATORIES LIMITED [Strike Off] CIN = U24232DL1995PLC065731

Company & Directors' Information:- K PHARMA PVT LTD [Strike Off] CIN = U24239MH2006PTC165126

Company & Directors' Information:- SUN INDIA CORPORATION PRIVATE LIMITED [Strike Off] CIN = U65991TN1943PTC000994

Company & Directors' Information:- B. S. LABORATORIES PRIVATE LIMITED [Strike Off] CIN = U24232UP1995PTC019060

    I.A. No.03 of 2020 in WP(C) No.47 of 2018

    Decided On, 02 November 2020

    At, High Court of Sikkim

    By, THE HONOURABLE MRS. JUSTICE MEENAKSHI MADAN RAI & THE HONOURABLE MR. JUSTICE BHASKAR RAJ PRADHAN

    For the Petitioner: Ms. Gita Bista, Karan Sachdev, Advocates. For the Respondents: R1 & R2, B.K. Gupta, Advocate, R3, Santosh Kumar Chettri, Government Advocate.



Judgment Text

Meenakshi Madan Rai, J.1. The Petitioner has filed an application under Order VI Rule 17 read with section 151 of the Code of Civil Procedure, 1908 (in short, “CPC”), seeking to insert amendments in the Writ Petition. The proposed amendments are as follows; Insertion of Paragraph 4.1 and 4.2 after the existing Paragraph 4:“4.1. The Petitioner is also challenging the proviso to Section 174(2)(c) of the Central Goods and Services Tax Act, 2017 which provides that tax exemption granted as an incentive through a notification would not continue if such notification is rescinded.4.2 Further, the Petitioner is also challenging the Notification No.21/2017-C.E. dated 18.07.2017 vide which the exemption notifications issued under the erstwhile regime (including Notification No.20/2007-C.E. dated 25.04.2007) were rescinded.”Replacing the contents of the existing Paragraph 32 with the following:“32. Thus, aggrieved by the impugned proviso to Section 174(2)(c) of the CGST Act, the impugned Notification No.21/2017-C.E. dated 18.07.2017 and the Budgetary Support Scheme which have resulted in denial of vested right to the Petitioner to continue to enjoy the benefits promised to it, the Petitioner is filing the present petition based on the following grounds. Each ground is independent and without prejudice to one another.”Incorporating Paragraph A18 after the existing paragraph A17:“A.18 It is submitted that the proviso to Section 174(2)(c) of the CGST Act and the impugned Notification No.21/2017-C.E. dated 18.07.2017 are in effect taking away the vested rights of the Petitioner by reducing the exemptions/benefits promised to the Petitioner. Thus, the impugned proviso to Section 174(2)(c) of the CGST Act and the impugned Notification No.21/2017-C.E. dated 18.07.2017 are contrary to the established principles of promissory estoppel and legitimate expectation as submitted in foregoing Grounds. For this reason, the impugned proviso to Section 174(2)(c) of the CGST Act and the impugned Notification No.21/2017-C.E. dated 18.07.2017 are liable to be struck down being violative of Article 14 of the Constitution of India and the vested rights of the Petitioner. It may be noted that this submission is without prejudice to Petitioner’s contention that the exemptions promised to the Petitioner is a vested right.”Incorporating the following clauses in place of existing clauses (c) to (e):“(c) strike down the proviso to Section 174(2)(c) of the Central Goods and Services Tax Act, 2017 as unconstitutional being contrary to Article 14 of the Constitution of India;(d) strike down the Notification No.21/2017- C.E. dated 18.07.2017 issued by the Respondent No.1 as unconstitutional being contrary to Article 14 of the Constitution of India(e) Hold that proviso to Section 174(2)(c) of the Central Goods and Services Tax Act, 2017; Notification No.21/2017-C.E. dated 18.07.2017 and the Scheme of Budgetary support under Goods and Service Tax regime to the units located in the States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North-East including Sikkim to Article 14 and the vested rights of the Petitioner;(f) Issue any other writ, order or direction as this Hon’ble Court may deem just and fair and circumstances of the case;(g) For such further and other reliefs as the nature and circumstances of the case may require.”3. Learned Counsel for the Petitioner submits that the proposed amendments are necessary for an effective adjudication of the main Writ Petition and will under no circumstance cause any harm, loss or prejudice to the Respondents. The proposed amendments do not change the nature and character of the Writ Petition and are being sought bona fide in the interest of justice. The proposed amendments hence be considered and allowed.4. Per contra, the Learned Counsel for the Respondents No.1 and 2 filed his reply to the I.A. and in the averments thereof objected to the proposed amendments. Learned Counsel contended that post the Judgment of the Hon’ble Supreme Court in Civil Appeal Nos.2256-2263 of 2020 arising out of S.L.P.(C) Nos.28194- 28201/2010 dated 22-04-2020 in the matter of the Union of India & Another Etc. Etc. vs. M/s. V.V.F. Ltd. & Another Etc. Etc., the Hon’ble Supreme Court in Paragraph 14.3 has observed as follows;“14.3 As observed hereinabove, the subsequent notifications/industrial policies do not take away any vested right conferred under the earlier notifications/ industrial policies. Under the subsequent notifications/ industrial policies, the persons who establish the new undertakings shall be continue to get the refund of the excise duty. However, it is clarified by the subsequent notifications that the refund of the excise duty shall be on the actual excise duty paid on actual value addition made by the manufacturers undertaking manufacturing activities. Therefore, it cannot be said that subsequent notifications/industrial policies are hit by the doctrine of promissory estoppel. The respective High Courts have committed grave error in holding that the subsequent notifications/industrial policies impugned before the respective High Courts were hit by the doctrine of promissory estoppel. As observed and held hereinabove, the subsequent notifications/ industrial policies which were impugned before the respective High Court can be said to be clarificatory in nature and the same have been issued in the larger public interest and in the interest of the Revenue, the same can be made applicable retrospectively, otherwise the object and purpose and the intention of the Government to provide excise duty exemption only in respect of genuine manufacturing activities carried out in the concerned areas shall be frustrated. ………”5. That, the Hon’ble Supreme Court has thereby rejected the original Petition of the Petitioner wherein they had sought benefits on the ground of promissory estoppel and hence this Petition deserves no consideration. It was further contended that the I.A. has been brought at a belated stage when the original Writ Petition has been heard in its entirety and the Judgment in the matter was reserved, indicating the mala fides of the Petitioner. It was next pointed out that with the Goods and Services Tax being rolled out a new Scheme has been offered as a measure of goodwill, only to the units which were eligible for drawing benefits under the earlier excise duty exemption/refund scheme, but has no relation to the erstwhile schemes, thus the Petitioner has been compensated for the benefits that they were drawing in the earlier excise regime. That, instead of the 56% that was fixed earlier, the amount to be refunded is fixed at 58% giving the Petitioner the benefit of an additional 2%. Denying the statements of the Petitioner in Paragraphs 2 to 5 of the I.A. in totality it was contended that the proposed amendments change the entire nature and character of the suit besides the fact that nothing remains for adjudication in the Writ Petition in view of the above cited ratiocination of the Hon’ble Supreme Court and the proposed amendments merit no consideration and the petition ought to be dismissed.6. We have heard Learned Counsel for the parties at length. We have also perused the Writ Petition and the amendments proposed as detailed in the I.A.7. The prayers in the Writ Petition inter alia read as follows;“(a) Issue an appropriate Writ reading down Clause 5.1 & 5.2 of the Notification F.No.10(1)/2017-DBA-II/NER, notifying ‘Scheme of Budgetary support under Goods and Service Tax regime to the units located in the States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North-East including Sikkim’ so as to enable the Petitioner to claim full refund of the CGST and 50% of IGST paid through the electronic cash ledger;(b) Or, in the alternative, issue a writ of mandamus or any other writ/order/direction, to the Respondents No.1 to 3, directing them to fix a special rate of refund eligible to the Petitioner so that under the Budgetary Support Scheme, the Petitioner is entitled to refund equivalent to that under the erstwhile regime;(c) Hold that the Scheme of Budgetary support under Goods and Service Tax regime to the units located in the States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North-East including Sikkim is contrary to Article 14 and the vested rights of the Petitioner;(d) Issue any other writ, order or direction as this Hon’ble Court may deem just and fair and circumstances of the case;(e) For such further and other reliefs as the nature and circumstances of the case may require.”8. The prayers, therefore, are confined to granting the Petitioner refund of the Central Goods and Services Tax and 50% of the Integrated Goods and Services Tax paid through the electronic cash ledger. An alternative prayer ensues directing the Respondents to fix a special rate of refund eligible to the Petitioner to entitle them to refund equivalent to that available under the erstwhile regime which should also be granted under the budgetary support scheme.9. Order VI Rule 17 of the CPC clothes the Court with powers to allow either party to alter or amend their pleadings at any stage of the proceedings on such terms as may be just. It also requires that all such amendments shall be made as may be necessary for the purpose of determining the real question in controversy between the parties provided that no application for amendment should be allowed after the trial has commenced unless the Court comes to the conclusion that in spite of due diligence the party could not have raised the matter before the commencement of trial. Thus, the provisions in the first part is discretionary and in the second part is imperative inasmuch as amendments that are necessary for the purpose of determining the real question in controversy between the parties ought to be allowed.10. In the matter at hand, the Writ Petition was finally heard on 03-09-2019 and Judgment reserved. In the interim, the Petitioner filed an application being I.A. No.02 of 2019, wherein it was averred that the Hon’ble Supreme Court took up the entire batch of appeals filed by the Respondent against the Judgments passed by the Hon’ble High Court of Gujarat, Jammu and Kashmir, Guwahati and Sikkim on the issue of curtailment of central excise duty exemption, on 04-09-2019 in the Miscellaneous List. The appeal filed by the Respondent against the Judgment of this High Court dated 21-11-2017 was heard on 05-09-2019 and Judgment reserved. This fresh development was brought to the notice of this Court. Evidently the Judgment then came to be pronounced by the Hon’ble Supreme Court on 22-04-2020 in M/s. V.V.F. Ltd. (supra), the relevant Paragraph being 14.3 has already been extracted and reflected in the arguments of Learned Counsel for the Respondents No.1 and 2 hereinabove. Subsequent thereto, the amendment application being I.A. No.03 of 2020 was filed on 06-06-2020, seeking to incorporate amendments already extracted supra.11. By the proposed amendments the Petitioner seeks to challenge the vires of Section 174(2)(c) of the Central Goods and Services Tax Act, 2017 and Notification No.21/2017-C.E., dated 18- 07-2017, o

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n the ground that it takes away the vested rights of the Petitioner by reducing the exemption/benefits to the Petitioner. The prayers in the Writ Petition are confined to enabling the Petitioner to claim full refund of the CGST and 50% of the IGST paid through the electronic cash ledger. It cannot be said that the Petitioner was unaware of the provision of the statute the vires of which they now seek to assail, nor was it inserted at some point later in time to the filing of the Writ Petition. The question of the Petitioner’s inability to raise the matter in spite of due diligence, before the matter was heard or was taken up for hearing, therefore, does not arise. In view of the questions involved in the instant Writ Petition it cannot be said that the amendments are necessary for determining the real question in controversy between the parties considering the prayers of the Petitioner referred above. The proposed amendments if permitted would in fact change the very nature and character of the Writ Petition and introduce an entirely different Cause of action, which is not permissible.12. Consequently, we are not inclined to exercise our discretion in favour of the Petitioner, hence the Petition stands rejected and dismissed.
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