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IN THE HIGH COURT OF JUDICATURE AT PATNA

Civil Writ Jurisdiction Case No.9725 of 2024

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M/s. Johnson Paints Pvt. Ltd. a Company registered under the Companies

Act, having its Registered Office at Fathua Road, Sabalpur, Patna City, Patna

through one of its Director, Vikram Khanna, Male, Aged about 48 years, son

of Sri Shyam Narayan Khanna, Resident of City Centre Apartment, G-4

Block, Hajiganj, Opp. Punjab and Sind Bank, Patna City, P.S. Chowk Patna

City, District- Patna.

... ... Petitioner/s

Versus

1. The State of Bihar through the Chief Secretary, Cabinet Secretariat,

Government of Bihar, Patna.

2. The Principal Secretary-cum-Commissioner, Department of State Tax,

Government of Bihar, Patna.

3. The Principal Secretary, Department of Industry, Government of Bihar,

Patna.

4. The Director of Industries, Department of Industry, Government of Bihar,

Patna.

5. The Deputy Commissioner of State Tax, Patna South Circle, District- Patna.

6. The General Manager, District Industry Centre, Patna.

... ... Respondent/s

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Appearance :

For the Petitioner/s : Mr. Mohit Agarwal, Advocate.

For the Respondent/s : Mr. Vivek Prasad, GP 7 with

Mr. Sanjay Kumar, AC to GP 7.

Ms. Roona, AC to GP 7.

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CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY

ORAL ORDER

4 05-02-2026 Heard learned counsel for the parties.

2. The present Writ Petition has been filed for the

following reliefs:-

“(i) For issuance of an

appropriate writ or direction upon the

Respondent Commissioner of

Commercial Taxes now known as

Patna High Court CWJC No.9725 of 2024(4) dt.05-02-2026

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Commissioner of State Taxes as also the

Deputy Commissioner of Commercial

Taxes now known as Joint Commissioner

of State Taxes/Director of Industries to

reimburse 80% of VAT for the period

April, 2017 to June, 2017 and the

admitted SGST (State Tax) deposited

under the Bihar GST Act, 2017 by the

Petitioner for the period July, 2017 to till

date, and thereafter uptil the date of

eligibility of the petitioner company, as

promised to be granted by the

Respondent State in terms of Clause 3 of

the Industrial Policy Resolution, 2011

(hereinafter referred as ‘Policy, 2011’) as

the same has been abruptly not being

reimbursed in most arbitrary and illegal

manner.

(ii) For a direction to the

Respondents for grant of subsidies at the

earliest to save the petitioner’s unit as it

is suffering due to discontinuance of

reimbursement of the amount of SGST

(State Tax) deposited by the petitioner

and also for non-grant of the amount of

capital subsidy and other subsidies.”

3. In the counter-affidavit filed by the Respondent

Nos. 3, 4 and 6, at paragraph- 8, 9, 10 and 11, it is specifically

stated as under:-

“8. That since there was huge

amount involved in applications received

from the units through online portal till

31.08.2023, the Finance Department

advised the department to obtain the

approval of cabinet. In the cabinet

meeting dated 25.04.2025, approval was

granted to the proposal of considering

Patna High Court CWJC No.9725 of 2024(4) dt.05-02-2026

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the claim of the units which made

application on departmental portal till

31.08.2023. The units shall fulfill all

necessary conditions enshrined in

Industrial Incentive Policy 2011 (in short

IIP-2011). Accordingly a resolution to

process the claim of such units was

passed through Memo No. 1107 dated

05.05.2025.

9. That accordingly, action is

being taken on the claim of unit under

IIP-2011. It is relevant to state here that

after verification/scrutiny of the

application received through portal till

31.08.2023 it was found that the

petitioner unit got consent over its

investment proposal for establishment of

manufacturing cement paints, wall putty,

dry colour and vermillion in the meeting

of District Level Single Window

Clearance Committee dated 30.12.2012.

Later on unit got VAT Eligibility

Certificate by the General Manager.

District Industry Centre, Patna, vide

Letter No. 2004 da