MEGHALAYA FEED PRODUCTS Vs. UNION OF INDIA

JUDGEMENT

(1.) The scheme called the "Transport Subsidy Scheme, 1971" has been formulated and notified for grant of subsidy on the transport of raw materials and finished goods to and from the selected areas with a view to promote growth of industries. The State of Meghalaya falls within the selected area "A" of the scheme. In the said area petitioner M/S Meghalaya Feed Products has an industrial unit. Vide letter dated 12.05.2009 issued by the respondent Director of Industries to the petitioner, it has been conveyed that the subsidies had been sanctioned against the claim of the petitioner by the State Level Committee in its 58th meeting held on 07.05.2009 as such, has been advised to contact the North Eastern Development Finance, Guwahati for necessary disbursement. The types of subsidy, period and amount sanctioned are as under:

(2.) So far as the subsidy for the periods of 01.09.2005 to 31.03.2009, 01.04.2008 to 30.06.2008 and 01.07.2008 to 30.09.2008 are concerned same have been disbursed in favour of the petitioner whereas, regarding the Central Transport Subsidy for the periods of 01.10.2008 to 31.12.2008 and 01.01.2009 to 31.03.2009, amounting to Rs. 2,33,44,480/- has not been disbursed same has been conveyed to the respondent No. 5 by the Under Secretary to the Govt. of India vide letter dated 02.09.2014 because the expenditure incurred by cash on transportation of raw materials/finished goods is not permissible as per the existing policy.

(3.) It appears that for ensuring that the object for grant of subsidy is not misused, the checklists for scrutiny of claims under the Transport Subsidy Scheme has been formulated as Annexures "A" and "B" to the letter dated 20.11.2009 issued from the Ministry of Commerce and Industry, Department of Industrial Policy and Promotion which inter alia provides that all claims arising from transportation of raw materials and finished goods prior to 10.09.2009 will be examined/re-audited as per checklist "A" of 44 points. Point No. 35 which is relevant provides as under, Bank statement for payment made to Transporters during the period (payment only by cheque).