STEEL STRIPS WHEELS LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE challenge laid in the present writ petition filed under Article 226 of the Constitution of India is to the impugned notification dated 26.04.2000 whereby incentive of capital subsidy as enshrined in the industrial policy of 1996 qua medium and large scale industries was withdrawn.

(2.) THE incentives to large and medium units have been specified in Rule 7 which may be applicable to such of the units which undertake expansion as prescribed in rule 2.5. Clause 2.5 defines 'Expansion' to mean at least 50% increase in the fixed capital investment or a minimum of 50% increase in the installed capacity as recorded in the industrial licence/certificate of Department of Industries.

(3.) IT is the say of the petitioner that they had already taken steps towards such expansion and the change in the definition midstream has resulted into the withdrawal of the benefit of the subsidy which would have been available to them on their commencement of production.