SHARDA MOTOR INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule , returnable forthwith. By consent of the parties the petition is heard finally at the stage of admission.

(2.) By way of this Petition the petitioner company seeks direction under Article 226 of the Constitution of India to quash and set aside the letters dated 14/10/2009 and 13/8/2010 as well as show cause notice dated 4/2/2010 issued by the Dy. Commissioner of Central Excise and Service Tax (L.T.U.) ,respondent no.5, holding that three manufacturing units and one trading unit of the petitioner located at Nasik , Kanchipuram and Singur are not covered under Large Tax Payer s Unit ( for short LTU) scheme . The petitioner further seeks declaration that these three units and the trading units of the petitioner are covered by LTU .

(3.) Before dealing with the submissions of learned counsel of both the sides it is necessary to state in brief the scheme of LTU which 2008. In order to avail of LTU facility it was necessary for the unit to fill up the consent form to the Chief Commissioner LTU and if found eligible then the Chief Commissioner, LTU to issue an acceptance letter. Such process of acceptance would not normally take more than seven days . The scheme is a benevolent amendment leading to increase satisfaction amongst the tax payer by reducing their complaint and transaction cost and bringing more efficiency in tax administration. Therefore, it is expected from the Chief Commissioner, LTU to play a practical role in the administration of LTU.