IN THE HIGH COURT OF JUDICATURE AT PATNA

Civil Writ Jurisdiction Case No.14709 of 2016

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M/s Hotel U. S. Residency, a proprietary concern having its place of business

at opposite LIC Office, M.G. Road, Aurangabad-824101 through its

proprietor Smt. Urmila Devi wife of Shyam Kishore Prasad Resident of

Urmila Villa, Surya Mandir Road, Sahpur, P.O., P.S., District Aurangabad

824101.

... ... Petitioner/s

Versus

1.

The State of Bihar.

2.

The Director of Industries, Government of Bihar, Vikas Bhawan, Bailey

Road, Patna.

3.

The Principal Secretary cum Commissioner of Commercial Taxes, Bihar,

Patna.

4.

The Deputy Commissioner of Commercial Taxes, Aurangabad Circle,

Aurangabad.

5.

The Assistant Commissioner of Commercial Taxes, Aurangabad Circle,

Aurangabad.

... ... Respondent/s

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Appearance :

For the Petitioner/s

:

Mr. S.D. Sanjay, Sr. Advocate

Mr. Alok Kumar Agrawal, Advocate

For the Respondent/s :

Mr. Vikash Kumar, S.C. 11

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CORAM: HONOURABLE MR. JUSTICE S. KUMAR

ORAL JUDGMENT

Date : 02-03-2022

Heard learned counsel for the parties.

Petitioner has prayed for the following relief:-

“i. For a direction to the Respondents for

reimbursement by the amount of subsidy up to 100% of the

admitted Entry Tax/VAT in terms of the promise made in

the Industrial Policy Resolution, 2011;

ii. For a direction to the respondents i.e.

Department of Industry, to hand over funds to the

Commercial Taxes Department for reimbursement of the

subsidy amount to the extent of 100% of the under

Patna High Court CWJC No.14709 of 2016 dt.02-03-2022

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Industrial Incentive Policy 2011; and/or for any other

relief(s) for which the petitioner may be found entitled to

in the facts and circumstances of the present case.”

Briefly stated the facts of the case is that petitioner is a

proprietor concern of a Lady Entrepreneur and carrying on the

business of Hotel & Restaurants Services in the name and style

of Hotel U.S. Residency at Aurangabad in Bihar. Petitioner is

registered as a dealer under the provisions of Bihar VAT Act-

2005, Central Sales Tax Act, 1956 and Bihar Entry Tax Act,

1993, in Aurangabad Circle, Aurangabad.

It is submitted by the learned Senior Counsel on behalf

of petitioner that Govt. of Bihar came out with an industrial

policy resolution-2011, promising various incentives for

potential promoters to invest in Bihar to set up industries other

than prohibited industries and upon setting up of such industrial

unit in Bihar, it will be entitled for the incentives as promised in

the industrial Policy Resolution-2011.

In Industrial Policy Resolution-2011 various types of

incentives have been promised by the State Government to the

investors which includes 100% exemption from Stamp Duty and

Registration Fee during pre-production phase, capital subsidy

for Industrial Units, reimbursement of 80% of VAT/Entry Tax,

100% exemption in Luxury Tax etc.

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It is specifically submitted that Clause-3 of the Industrial

Policy Resolution-2011 clearly mentions about Tax Related

Incentives by way of reimbursement of VAT/Entry Tax and

100% exemption in Luxury Tax, and such facility will be

available to new MSME/Large Industries for which pass-book

will be issued in which details of Bihar VAT paid to Bihar

Commercial Taxes Department would be entered. Officials of

Industry Department will issue the Pass-book after verification

about the amount of VAT/Entry Tax deposited and on the basis

of such certificate the Commercial Taxes Department will

reimburse the amount of VAT. All new Units will be eligible to

avail 80% per cent reimbursement against the admitted

VAT/Entry Tax amount deposited in the account of Government

for a period of 10 Years with the Cei