Gauhati High Court Grants Relief to Industrial Units on Assam Tax Benefit Denial

The Gauhati High Court has provided relief to industrial units affected by the withdrawal of tax benefit extensions under the Assam Industries Tax Exemption Schemes of 2009 and 2017. After the introduction of GST, Assam replaced these schemes with the Assam Industries (Tax Reimbursement for Eligible Units) Scheme, 2017. This allowed eligible units to apply for an extension of benefits if they couldn’t utilize the full monetary ceiling. While some extensions were granted, a 2020 amendment revoked the power to extend eligibility, deeming all pending applications rejected. Representing the industrial units, senior advocate Dr. Ashok Saraf argued this move was arbitrary and violated Article 14 of the Constitution. The Court agreed, ruling that the state must apply consistent standards and extend equal treatment to all eligible units.