VVF LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) AS I am unable to agree with the views of Hon'ble Justice D. A. Mehta in this group of petitions I have to set out my views, and conclusion separately as under:

(2.) IN these group of petitions, the petitioners Kutch Chamber of Commerce and Industry, a Voluntary Association of Industrial Units, and other Industrial Units operating in the Kutch District of State of Gujarat, have challenged the Notifications issued by respondent No. 1 bearing No. 16/2008-C. E dated 27. 3. 2008 as well as Notification No. 33/2008-C. E dated 10. 6. 2008 on the ground that they have effect of depriving the petitioners and other similarly situated industries and industrial units, set up pursuant to the Notification No. 39/2001-C. E dated 31. 7. 2001, providing for the exemption from payment of excise duty for five years from the date of commencement of commercial production, to the newly set up industrial units with specific minimum investments as an incentive to set up new industries in Kutch region after the devastating earthquake. The Government of India in exercise of power conferred upon it under the sub-section (1) of Section 5a of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978, issued Notification No. 39/2001-C. E dated 31. 7. 2001 providing incentives in form of exemption from payment of excise duty for period of five years from the date of commencement of commercial production to newly set up industrial units with minimum specific investments, in the Kutch district so as to help the entire Kutch region to over come untold miseries and hardships befallen it in wake of devastating earth quake of 2001. The incentives of exemption from payment of excise duty to newly set up industries was for bringing about some succor to the people of region in helping them rehabilitating themselves on securing employment in and on account of newly set up industries. The nature of total exemption from payment of duty to Industrial units set up after 31. 7. 2001 up to 31. 7. 2003 and thereafter extended up to 2005 came to be substantially changed as the respondent no. 1 issued impugned notifications dated 27. 3. 2008 and 10. 6. 2008, where under, the existing exemption from payment of excise duty came to be substantially withdrawn. Being aggrieved and dissatisfied with these notifications, the petitioners and other similarly situated, have approached this Court under Article 226 of the Constitution of India seeking appropriate writ in the nature of mandamus, prohibition or any other writ, order or direction for quashing and setting aside the notifications dated 27. 3. 2008 and 10. 6. 2008 being contrary to establish principles of law, arbitrary and discriminatory and also violative of Article 14 of the Constitution of India. All these petitions were heard together and are being disposed of by common judgment as they involved identical question of law and almost similar facts.

(3.) THE facts in brief deserve to be set out as under.