SATYA METALS Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners have preferred the present writ petition under Article 226 of the Constitution of India, mainly seeking relief for issuance of writ of certiorari or any other writ, order or direction, quashing order dated 17-3-2011 of 'DGEP' and all connecting proceedings thereto or in relation thereto and for issuance of a writ of Mandamus directing the respondents to allow benefit of exemption Notification No. 50/2003-C.E., dated 10-6-2003 and to direct the Commissioner of Central Excise, Chandigarh not to demand differential excise duty and thereby to drop all the proceedings initiated in relation to non extending benefit of Notification No. 50/2003-C.E., dated 10-6-2003 to the petitioners. The petitioner No. 1 i.e. M/s. Satya Metals a partnership firm is engaged in the manufacture of copper wire/strips, copper ingots including alloy ingots and is a 100% Export Oriented Unit (in short called as "EOU"), as such, has set up its unit at Nalagarh, District Solan, Himachal Pradesh having been issued 'EOU' licence on 14-7-2009 as per 100% 'EOU' Scheme in reference to Notification No. 23/2003 dated 31-3-2003. The petitioner No. 1 was also granted Central Excise registration for operating 100% 'EOU' and the Development Commissioner, Special Economic Zone, 'NOIDA' has also issued letter of permission ('LOP') on 31-8-2006 to the petitioners for its unit established at Jammu (J & K) for manufacturing the same items as indicated above and further vide its letter dated 23-6-2009 has also included additional location of work at village Rakh Ram Singh, Tehsil Nalagarh, District Solan, Himachal Pradesh, in reference to the provisions of Foreign Trade Policy (in short called as FTC). In the above mentioned 'LOP', undisputedly, the petitioners were procuring duty free raw material against CT-3 certificates for manufacturing the above mentioned final products and the petitioners had been clearing goods in Domestic Tariff Area ('DTA'). As such, the petitioners were permitted both on the import of capital goods as well as raw materials without payment of excise as well as customs duty. By virtue of setting up of its unit in specified area, the petitioner No. 1 was entitled to various incentives by the Central as well as the State Government.

(2.) Chapter 6 of the Foreign Trade Policy ('FTP') issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, contains the policy in relation to 100% 'EOU' units etc. While a 100% 'EOU' unit is a manufacturing entity engaged in the export of goods, whereas, STP or Software Technology Park, is a unit engaged in the development and export of software but both 'EOU' unit and STP are governed by a common policy contained in Chapter 6 of the FTP. A 100% 'EOU' unit has the following features:-

(3.) The 'EOU' scheme is implemented by the Central Government by the issuance of appropriate exemptions of Custom and Excise which gives effect to the provisions of the 'FTP', mentioned above. The New Industrial Policy for the State of Himachal Pradesh was published by the Ministry of Commerce & Industry, Department of Industrial Policy & Promotion by way of an office memorandum (O.M.), dated 7-1-2003.