DHARAMPAL SATYAPAL LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner Industry claims the benefit of exemption under the Central Excise Notification No. 8/2004 : /2004 dated 21.1.2004 and the Notification No. 28/2004 : , dated 9.7.2004 and seek direction on the respondents 2 & 3 to take decision on their pending withdrawal applications from the ESCROW Account, for making permissible investment under Clause (B) of the exemption notification No. 8/2004 : /2004. I have heard Mr. A.K. Bhattacharyya, learned Senior Counsel on behalf of the petitioners and Mr. B. Sharma, learned Senior Standing Counsel for the Central Excise department, appearing for the respondents.

(2.) 1 In exercise of powers conferred by Section 5A(i) of the Central Excise Act, 1944 (hereinafter referred to as "the Excise Act") read with Section 3(3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and Section 136(3) of the Finance Act, 2001, the Central Government in public interest, exempted certain goods from the whole of duties of excise. The pre-conditions for exemption were specified in the Notification No. 8/2004 : /2004 of 21.1.2004 which envisaged, duty exemption for North East based industrial units commencing commercial production, between 21.4.1997 to 28.2.2001.

(3.) 1 Amendment to the earlier exemption Notification dated 21.1.2004 was brought through the notification No. 28/2004 : , dated 9.7.2004, which substituted Clause (C), (D) and (E) in the earlier notification. According to the substituted Clause (C) for making investment under pre-existing Clause (B), the eligible manufacturer is required to deposit the payable duty within 60 days from the end of the quarter, in an ESCROW Account of an authorized bank, opened specifically by the manufacturer for depositing duty under the exemption scheme. However withdrawal from the ESCROW account is permitted to be made with prior approval of the jurisdictional Commissioner of Central Excise and the amount deposited in the ESCROW Account is required to be invested in the permissible spheres specified in Clause (B), within 2 years (now extended to 4 years) from the date of deposit of duty in the ESCROW account. When any amount is withdrawn from the ESCROW Account, the same is required to be invested for the permitted purpose, within 60 days from the date of withdrawal.