Sikkim HC Quashes GST Order Denying Budgetary Support of Rs. 59L to Zydus Wellness

The Sikkim High Court has quashed a GST order that denied budgetary support of ₹5.9 lakh to Zydus Wellness, a pharmaceutical company. The court's decision provides a significant victory for the company. The ruling clarifies that a tax authority cannot deny a company a benefit if it is for a valid reason. The court’s decision is a crucial reminder to all tax authorities to follow due process. The court also held that a tax authority cannot impose a tax for an activity that is not a valid activity.