Madras High Court
Pudugai Amman Granites vs The Secretary To Government on 19 April, 2022
Author: B.Pugalendhi
Bench: B.Pugalendhi
W.P.(MD)No.15110 of 2013
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 19.04.2022
CORAM:
THE HONOURABLE MR.JUSTICE B.PUGALENDHI
W.P.(MD)No.15110 of 2013
and
W.M.P.(MD)No.14895 of 2019
Pudugai Amman Granites,
S.R.No.234/13A, Panampatti Village,
SIPCOT West,
Perunjunai Post,
Illuppur Taluk,
Pudukkottai District,
Rep. by its Managing Partner,
S.M.Palanivel ... Petitioner
versus
1. The Secretary to Government,
Micro, Small and Medium Enterprises
Department,
Secretariat,
Chennai – 600 009.
2. The Industries Commissioner and
Director of Industries and Commerce,
36, South Canal Bank Road,
Mandavelippakkam,
Chennai – 600 028.
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W.P.(MD)No.15110 of 2013
3. The General Manager,
District Industries Centre,
Collectorate Compound,
Pudukkottai. ... Respondents
Writ Petition filed under Article 226 of the Constitution of India,
seeking for the issuance of Writ of Mandamus, to direct the
respondents to clarify that the production of granite monuments by
cutting and polishing granite is an activity eligible to avail capital
subsidy, electricity subsidy etc., as per G.O.Ms.No.14, Micro, Small
and Medium Enterprises (B) Department, dated 07.05.2008 considering
the representation of the petitioner Firm dated 27.07.2013.
For Petitioner : Mr.S.Muthiah
For Respondents : Mr.S.P.Karthick,
Government Advocate
ORDER
This writ petition is filed for a mandamus directing the respondents to clarify that the production of granite monuments by cutting and polishing granite is an activity eligible to avail capital subsidy, electricity subsidy etc. as per G.O.Ms.No.14, Micro Small and Medium enterprises (B) Department dated 07.05.2008, by considering 2/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 the petitioner's representation dated 27.07.2013.
2. The Government, in order to encourage the small scale sector, which provides tremendous employment in the industrially backward areas, constituted a High Level Committee for identifying the industrially backward blocks in the State. The High Level Committee identified 251 blocks in the State as industrially backward blocks and also suggested a package of incentive scheme for the enterprises established in the industrially backward blocks. The recommendation of High Level Committee was accepted by the Government, vide G.O.Ms.No.14, Micro Small and Medium Enterprises (B) Department, dated 07.05.2008 as Micro, Small and Medium Industries Policy 2008. A package of incentive and concessions were provided under the Scheme to all the new Micro Small and Medium Manufacturing Enterprises, which were established after 01.08.2006 and commenced commercial production on or before 22.02.2008. As a further development, a new scheme called “New Entrepreneur-cum- 3/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 Enterprises Development Schemes” (NEEDS) was implemented vide G.O.Ms.No.49, Micro, Small and Medium Enterprises (D2) Department dated 29.10.2012 from 2012-2013 onwards. This scheme aims to provide training to young first generation entrepreneurs in conceiving, planning, initiating and launching a manufacturing or service enterprise successfully. The objectives of the scheme are extracted as follows:
“Objectives
(i) Educated youth will be given entrepreneurship training to groom them as first generation entrepreneurs on the essentials of conceiving, planning, initiating and launching a manufacturing or service enterprises successfully.
(ii) On completion of the training program, they would be assisted to prepare their business plans and helped to tie up with financial institutions to get term loan, to set up manufacturing or service enterprises with a project cost not exceeding Rs.1.00 crore and capital subsidy of 25% of project cost not exceeding Rs.25.00 lakhs with 3% interest subvention to be provided by the State Government.4/12
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(iii) Subject to availability, they would also be provided with reservation upto 25% for allotment of Plots / Sheds in SIDCO Industrial Estates in the State.”
3. The list of activities ineligible for assistance under the Scheme were identified as 25 and the same is enclosed in Annexure II as follows:
“8. Mining and Quarrying Ores, Minerals etc. [Excluding polishing, cutting, crushing etc. of mined ores/minerals]”
4. The petitioner, who is running a small scale unit engaged in producing granite monuments, presented an application dated 24.02.2011 to the third respondent to avail capital subsidy and electricity under the Scheme, but, the application was returned by the third respondent on 24.11.2011 stating that clarifications are yet to be received from the Government regarding granite cutting and polishing activity. The petitioner is repeatedly requesting for the capital subsidy 5/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 and electricity subsidy from the year 2011 and the same was not considered by the respondents and therefore, the writ petition is filed.
5. The learned counsel for the petitioner submits that the petitioner Firm is eligible to avail all the assistance enumerated in G.O.Ms.No.14, Micro, Small and Medium Enterprises (B) Department dated 07.05.2008 and as per the New Entrepreneur-cum-Enterprise Development Scheme (NEEDS) of Government of Tamil Nadu, dimensional stone cutting, polishing of mined minerals is eligible for assistance.
6. The learned counsel for the petitioner has relied on the Guidelines on Credit Linked Capital Subsidy Scheme issued by the Government of India and G.O.Ms.No.49, Micro, Small and Medium Enterprises (D2) Department, dated 29.10.2012 in support of his contentions.
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7. The learned Government Advocate appearing for the respondents submits that the petitioner is eligible for capital subsidy scheme under CLCSS Credit Linked Capital Subsidy Scheme for Technology Upgradation from the Government of India and the petitioner has to approach the Government of India, Ministry of Micro, Small and Medium enterprises to avail the subsidy under this Scheme. However, he submits that the petitioner is not entitled for any benefit under the New Entrepreneur-cum-Enterprises Development Scheme. The learned Government Advocate has also relied on the letter of the Government dated 23.01.2013 and G.O.Ms.No.65, Micro, Small and Medium Enterprises (D-2) Department dated 08.07.2010.
8. This Court considered the rival submissions and also perused the materials placed on record.
9. The petitioner, who is running a small scale unit of granite cutting and polishing, has applied for grant of capital subsidy as per 7/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 G.O.Ms.No.14, Micro, Small and Medium Enterprises (B) Department dated 07.05.2008. The said applications were returned by the Industries Commissioner on 24.11.2011 and 04.02.2013, to comply certain rectification. The third respondent in the counter affidavit has taken a stand that the petitioner's contentions could not be accepted that the Credit Linked Capital Subsidy Scheme for Technology Upgradation and the New Entrepreneur-cum-Enterprises Development Scheme are entirely different. The petitioner is entitled for capital subsidy as per Credit Linked Capital Subsidy Scheme, implemented by the Government of India and not under the scheme of Government of Tamil Nadu.
10. The Government of Tamil Nadu, realizing that the small units are providing more employment in rural areas, constituted a High Level Committee for identifying the industrially backward blocks in the State and the High Level Committee has also identified 251 blocks in the State as industrially backward blocks. The Committee has also 8/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 suggested a package of incentive schemes for the enterprises established in the industrially backward blocks, such as, infrastructure support, incentive support, technical support, information and marketing support and policy support. Thereafter, the Government has implemented the New Entrepreneur-cum-Enterprises Development Scheme “NEEDS” vide G.O.Ms.No.49, Micro, Small and Medium Enterprises (D2) Department dated 29.10.2012 and as per the said Government Order, polishing, cutting, crushing, etc. of mined ores and minerals are eligible for assistance. The list of activities ineligible for assistance in Annexure II of G.O.Ms.No.49, dated 29.10.2012 is extracted as under:
“8. Mining and Quarrying Ores, minerals etc. [Excluding polishing, cutting, crushing etc. of mined ores / minerals]”
11. Though the learned Government Advocate states that the eligibility for incentives under Micro, Small and Medium Industries Policy 2008 for granite cutting and polishing has already been clarified 9/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 by the Government in Letter No.249/D-II/2013-1, dated 23.01.2013, it could not be ascertained that the polishing and cutting of granite is also excluded from the list of activities eligible for any assistance under the scheme in the clarification letter. When G.O.(Ms)No.49, dated 29.10.2012, has specifically excluded the polishing, cutting and crushing of mined ores/minerals from the list of activities ineligible for assistance, the petitioner is entitled for the incentive under the scheme.
12. Therefore, the writ petition is allowed with a direction to the respondents to consider the petitioner's representation dated 27.07.2013 as per G.O.(Ms).No.14, dated 07.05.2008 and G.O.(Ms).No.49, dated 29.10.2012, within a period of eight weeks from the date of receipt of a copy of this order. No costs. Consequently, connected miscellaneous petition is closed.
19.04.2022 ogy Index : Yes / No. Internet: Yes / No. 10/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 To
1. The Secretary to Government, Micro, Small and Medium Enterprises Department, Secretariat, Chennai – 600 009.
2. The Industries Commissioner and Director of Industries and Commerce, 36, South Canal Bank Road, Mandavelippakkam, Chennai – 600 028.
3. The General Manager, District Industries Centre, Collectorate Compound, Pudukkottai.
11/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.15110 of 2013 B.PUGALENDHI, J.
ogy W.P.(MD)No.15110 of 2013 19.04.2022 12/12 https://www.mhc.tn.gov.in/judis