UNION OF INDIA Vs. ASSAM BROOK LTD.

JUDGEMENT

(1.) These writ appeals are directed against the common judgment and order dated 29th Nov., 2004 passed by the learned Single Judge in a batch of writ petitions filed by the companies engaged in producing and manufacturing tea within the territorial limits of this court for declaration that they are not liable to pay the additional duty of excise imposed by the Finance Act, 2003 and for consequential reliefs including refund of excise duty paid.

(2.) The Government of India in the Ministry of Industries, Department of Industrial Policy and Promotion, by the Office Memorandum dated 24th Dec., 1997 announced the New Industrial Policy for development of industries in the North Eastern Region and introduced a new and synergetic intensive package to stimulate development of industries. The Policy, amongst various other incentives and concessions also include exemption from payment of Central Excise in respect of industrial activities relating to manufacture of tea in the North Eastern States for a period of ten years. The petitioners in all the writ petitions are manufactures of tea classifiable under Chapter 9 heading 09.02 sub-heading 9.2.2000 of the Central Excise Tariff Act, 1985. No central excise was leviable on tea and tea waste falling under the heading and sub-heading as above. With effect from midnight of 27th/28th Feb., 1999, provisions for payment of excise duty at the rate of Rs.2 per kilo gram on bulk tea was introduced without any exemption to the manufacturers of tea in the North Eastern Region.

(3.) Being aggrieved, a series of writ petitions were filed before this court by the manufacturers of tea. Notification No.33 of 1999 was issued on 8.7.1999 under the relevant provisions of the statute in question during the pendency of those petitions. By this notification, amongst other items, tea cleared from a unit in the North Eastern States was exempted from payment of excise duty leviable under the Central Excise Act, 1944, Additional Duties of Excise (Goods of Special Importance) Act, 1957 and the Additional Duties of Excise (Textile and Textile Articles) Act, 1978. The exemption contained in this notification has been given effect to in the following manner: