AMBIKA INTERNATIONAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners, in these 4 writ petitions, claim to be manufacturers of menthol, dementholised oil, deterpenated fractionated menthol oil, and other similar products, for which they are registered with the Central Excise authorities. The premises, in which the petitioners claim to manufacture the said products, are proximately located, in the Bari Brahamana locality in Jammu. The products stated to be manufactured by the petitioners are used as raw material in the manufacture of further products, by downstream manufacturers, to whom the petitioners claim to be clearing and selling their products. Cenvat Credit, under the Cenvat Credit Rules, 2004, is availed, by such downstream manufacturers-chiefly M/s Sharp Menthol India Ltd (SMIL) under Rule 12 of the said Rules. As the availment of the said Cenvat Credit is not subject matter of dispute in the present case, no further reference is required to be made thereto.

(2.) By virtue of the geographical location, i.e. in notified areas in the state of Jammu and Kashmir, the petitioners claim the benefit of areabased exemption from payment of duty, under the Central Excise Act, 1944 (hereinafter referred to as "the Act"), in terms of Notification 56/2002-CE, dated 14.11.2002. Under the said Notification, manufacturers located in the areas notified in the said Notification, in the State of Jammu and Kashmir, are entitled to exemption, from duty, on the products manufactured by them, for which purpose they are, in the 1st instance, required to pay the duty, whereafter they are entitled to be refunded that amount of the said duty as has been paid otherwise than by way of utilisation of Cenvat Credit, i.e. through their Personal Ledger Account (PLA).

(3.) Concededly, all the 4 petitioners, claimed, and were granted, the benefit of Notification 56/2002-CE supra, on the clearances, effected by them, of the products stated to have been manufactured in their premises and cleared to SMIL and other downstream manufacturers.