PURBANCHAL CEMENT LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The present application under Article 226 of the Constitution of India has been presented challenging orders dtd. 27/8/2012 and 24/3/2017 passed by the Assistant Com-missioner of Central and Service Tax, Tinsukia whereby the application for grant of Central Excise Exemption on substantial expansion of the petitioner company for 10 years has been rejected. The petitioner has also challenged the provisions of Clause 5 (b) of the Notification No. 20/2007.

(2.) As per the facts projected, the petitioner is a company which is in the business of cement manufacturing. In the year 2007, a policy was adopted by the Government in the name North East Industrial and Investment Promotion Policy, 2007 (hereinafter referred to as the NEIIPP) whereby there were certain exemptions of central excise duty which was to be given to new as well as existing units undergoing substantial expansion. Such exemption was to be given for a period of 10 years from the date of commencement of commercial production or expansion which-ever is later.

(3.) According to the petitioner, the petitioner had started its commercial production on 1/4/2008 and is a new unit. It is also admitted that the petitioner had got the exemption as a new unit for 10 years. It is however the case of the petitioner that on 1/2/2012 substantial expansion of the fixed capital more than 25% was made and therefore another application was made to seek further excise duty exemption for 10 years which however has been declined.