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Calcutta High Court (Appellete Side)

(Formerly Emami Biotech Ltd.) vs State Of West Bengal & Ors on 8 December, 2022

08.12.2022
 Sl.No. 238
Ct.No.3
Amalranjan
              IN THE HIGH COURT AT CALCUTTA
               CIVIL APPELLATE JURISDICTION
                      APPELLATE SIDE

                      MAT 62 of 2019
                            With
              CAN/1/2019 (Old CAN 1027 of 2019)


                      Emami Agrotech Ltd.
                 (Formerly Emami Biotech Ltd.)
                               Vs.
                   State of West Bengal & Ors.


                Mr. Rahul Dhanuka
                Mr. Harsh Choudhury
                                               ...for the appellant

                Mr. Jaydip Kar, Sr. Adv.
                Mr. R.S. De
                                 ...for the West Bengal Industrial
                                       Development Corporation
                                               Ltd (W.B.I.D.C.L)


                    The Government of West Bengal announced

                the West Bengal State support for Industries

                Scheme, 2008.      It provided for incentive for

                medium and large-scale industries.          If an

                industry satisfied the conditions in the scheme,

                inter alia, the government would remit 70

                percent of the value added tax (VAT) on a

                recurring basis till the remitted amount reached

                the fixed capital investment. Other incentives

                were also granted by the scheme.

                    The dispute in this case is with regard to

                calculation or quantification of this fixed capital

                investment of the appellant.
                      2




      The learned trial court had appointed a

Chartered Accountant to make an assessment of

this investment.

      By     a    judgment        and     order    dated     21st

December,         2018,     the    writ     application      was

dismissed.

      The learned trial judge opined that the

report      of    the     Chartered        Accountant        was

erroneous. The manner in which the chartered

accountant had appointed a Chartered Engineer

to make the valuation was criticised by the

court.

      The central issue is the determination of the

fixed capital investment of the appellant in the

subject three years.

      In our opinion, this is a highly specialised

work, involving professional and technical skill.

      Learned counsel for the appellant supports

the valuation made by the chartered accountant,

whereas Mr. Kar, learned counsel appearing for

the      respondent/Corporation               opposes        that

valuation tooth and nail, stating that the valuation made by the respondent corporation ought to be followed by the court.

The writ application is of 2015, admitted years ago and made ready by filing of affidavits. After its disposal this appeal has been prosecuted. It would be very unjust to relegate 3 the appellant, at this stage to a civil proceeding to determine this highly disputed question.

In those circumstances, we think it fit and proper that this issue should be adjudicated before a competent authority with technical assistance.

We direct the Principal Secretary, Government of West Bengal, Ministry of Commerce and Industries, to go into the above question and determine it. In making the determination, the Principal Secretary shall also consider and make a decision on the declaration and direction sought in prayers (a), (b), (c) and

(d) of the writ petition and also pass consequential directions, if necessary.

In making the determination, the Principal Secretary is entitled to take the assistance of any expert for which he shall seek proposals from the parties and consider and decide on those proposals.

The Principal Secretary, upon giving hearing the parties shall pass a reasoned order to be communicated to all concerned within three months of service upon him of a copy of this order.

Any interim order, in aid of the prayers in the writ application, if urged, may be considered by the Principal Secretary 4 The appeal and the writ application are disposed of.

Accordingly, the connected application is also disposed of.

(Biswaroop Chowdhury,J.) ( I.P. Mukerji,J.)