Sikkim HC Quashes GST Order Denying Budgetary Support of Rs. 59L to Zydus Wellness [Read Order]
The court said that Zydus Wellness’ claim is well in line with the principles laid down in the Glenmark Pharmaceuticals ruling and accordingly following that the order was set aside.
![Sikkim HC Quashes GST Order Denying Budgetary Support of Rs. 59L to Zydus Wellness [Read Order]](https://images.taxscan.in/h-upload/2025/08/25/2080329-zydus-wellness-gst-heinz-ip-taxscan.webp "Sikkim HC Quashes GST Order Denying Budgetary Support of Rs. 59L to Zydus Wellness [Read Order]")
In a recent ruling, the High Court of Sikkim quashed an order of the GST ( Goods and Services Tax) authorities that had denied the company budgetary support amounting to ₹59.44 lakh to Zydus Wellness.Justice Meenakshi Madan Rai, sitting in the single bench, held that the rejection of budgetary support by the Assistant Commissioner of Central Goods and Services Tax (CGST),...
In a recent ruling, the High Court of Sikkim quashed an order of the GST ( Goods and Services Tax) authorities that had denied the company budgetary support amounting to ₹59.44 lakh to Zydus Wellness.
Justice Meenakshi Madan Rai, sitting in the single bench, held that the rejection of budgetary support by the Assistant Commissioner of Central Goods and Services Tax (CGST), Gangtok Division, was untenable in law and contrary to established judicial precedent.
An order dated 27 June 2022, in which the GST authorities rejected Zydus Wellness’ claim for budgetary support under the Scheme of Budgetary Support to Eligible Industrial Units in the North Eastern Region and Himalayan States, 2017.
The Assistant Commissioner had concluded that upon verification, the eligible support was “in the negative” and hence, the company was not entitled to any benefit.
Zydus Wellness challenged this order under Article 226 of the Constitution, arguing that the issue had already been settled by a Division Bench of the same High Court in Glenmark Pharmaceuticals Limited v. Union of India (2024).
In that case, the Court had relied upon the Jammu & Kashmir and Ladakh High Court’s decision in Coromandel International Ltd. v. Union of India (2023), which clarified that budgetary support claims must be calculated on the basis of monthly tax payments through the cash ledger, rather than on a quarterly basis as interpreted by the authorities.
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Accordingly, the Court set aside the order dated 27 June 2022 passed by the Assistant Commissioner of CGST, Gangtok Division, and directed that Zydus Wellness’ claim be reconsidered in line with the principles laid down in the Glenmark Pharmaceuticals and Coromandel International rulings.
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