RAJESH BALIA, J. - (1.) HAVING heard learned Counsel for the parties we find that no interference is called for in the matter at the instance of appellant.
(2.) THE respondent was sanctioned a loan as a small scale industry to the tune of Rs. 13.1 lacs and in its meeting held on 16.03.1991 the District Level Committee also sanctioned a central subsidy in a sum of Rs. 2,09,600/ - under the Scheme of 1990. Against the sanctioned subsidy only Rs. 1.5 lac was disbursed by the appellant corporation and that was adjusted against the dues against the respondent -petitioner. The respondent -petitioner is engaged in the business of re -treading of tyres and the same was not in dispute.
(3.) ON 26.06.1991 the State Level Screening Committee held that the assessee's unit was not engaged in the manufacturing process and therefore was not eligible for Central Cash Subsidy and informed the Rajasthan Financial Corporation to recover the amount if already paid to the petitioner. In pursuance of said order, the appellant Corporation has debited the respondent's account with the amount of subsidy earlier credited to his account and raised a demand in respect thereof. As a consequence of not paying the same, demand with interest was raised.;