Facts of the Case

This common order of the High Court of Jammu & Kashmir and Ladakh at Jammu disposed of a batch of writ petitions filed by several industrial units in the Kathua/Samba region, including Jindal Drugs Private Limited (OWP Nos.1426/2018 and 1427/2018) and connected petitioners such as Chinnmastika Track Industries, Ivax Paper Chemicals, Jammu Pigments, Hawco Petrofer, Chetan Alloys, Aman Paper Mills, Bharat Udyog, Bharat Insecticides, Bharat Agrochem, Aqua Polymers, Chambal Alums, Anu Products, and T.K Paper Mills, all challenging the manner in which their pre-GST industrial incentive/exemption benefits were treated after the introduction of GST. The petitions had impleaded the Union of India, the State/UT authorities, the GST Council and CBIC as respondents.

Issues Involved

  1. Whether the OWP 1426/2018 and 1427/2018 petitions (Jindal Drugs) should proceed to adjudication or be withdrawn.
  2. Whether the connected batch of petitioners, whose grievance concerned continuation of pre-GST industrial incentives, were entitled to relief in light of the Supreme Court's ruling in Hero Motocorp Limited v. Union of India.

Petitioner's Arguments

  • Counsel for the petitioner in OWP Nos.1426/2018 and 1427/2018 (Jindal Drugs) sought to withdraw those two petitions with liberty to assail some further orders passed by the Union Territory.
  • Counsel for the connected batch of petitioners (Chinnmastika Track Industries and others) submitted that their grievance stood covered by paragraph 96 of the Supreme Court's judgment dated 17.10.2022 in Hero Motocorp Limited v. Union of India, (2023) 1 SCC 386, and sought disposal on that basis.

Respondent's Arguments

  • The Advocate General for the Union Territory did not oppose withdrawal of the Jindal Drugs petitions, and concurred that the connected batch could be disposed of consistent with the Hero Motocorp directions.

Court Order / Findings

  • OWP Nos.1426/2018 and 1427/2018 (Jindal Drugs) were dismissed as withdrawn with liberty as prayed for, and any interim protection stood vacated.
  • OWP Nos.306/2019, 307/2019 and WP(C) Nos.1943/2019 and 1944/2019 were adjourned for want of arguing counsel.
  • For the larger connected batch (OWP Nos.2121/2018, 2122/2018, 2123/2018, 2155/2018, 2157/2018, 2159/2018, 2160/2018, 362/2019, 365/2019 and WP(C) Nos.2358/2019, 2359/2019, 2360/2019 and 363/2019), the Court disposed of the petitions by permitting the petitioners to make representations to the Union Territory and the GST Council, who were directed to consider such representations in accordance with paragraph 96 of the Supreme Court's Hero Motocorp judgment, in an expeditious manner.

Important Clarification

  • Where the Supreme Court has already laid down the framework for industrial units to seek continuation of pre-GST incentives (as in Hero Motocorp, permitting representations to State Governments and the GST Council), connected High Court writ petitions raising the identical grievance are commonly disposed of by directing the petitioners to route their claims through that representation mechanism, rather than by an independent merits adjudication.
  • A petitioner's withdrawal of one writ petition with liberty to challenge future orders does not affect the disposition of other, differently-numbered connected petitions raising a distinct but related grievance — each matter in a batch retains its own procedural fate.

Sections Involved

  • Section 174 of the CGST Act, 2017 (savings clause) - relevant to the transition and continuation of pre-GST exemption/incentive benefits into the GST regime, the underlying subject of the Hero Motocorp litigation.
  • Article 226 of the Constitution of India - the writ jurisdiction invoked by the industrial units.

Decision – In Favour of

A mixed disposal: OWP 1426/1427 of 2018 (Jindal Drugs) were dismissed as withdrawn with liberty, without any merits finding; the larger connected batch of petitioners was disposed of with directions favourable to the Assessees, permitting them to pursue their industrial-incentive grievance through representations to the State/UT and GST Council per the Supreme Court's Hero Motocorp framework.

Case Details

High Court of Jammu & Kashmir and Ladakh at Jammu, OWP No.1426/2018 with IA No.1/2018 and connected matters (OWP Nos.1427/2018, 306/2019, 307/2019, 2121/2018, 2122/2018, 2123/2018, 2155/2018, 2157/2018, 2159/2018, 2160/2018, 362/2019, 365/2019, and WP(C) Nos.1943/2019, 1944/2019, 2358/2019, 2359/2019, 2360/2019, 363/2019); Coram: Hon'ble Mr. Justice Tashi Rabstan and Hon'ble Mr. Justice Rajesh Sekhri; decided on 11 September 2023.

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