2007 (9) TMI 653 - SC - Central Excise

Summary

Issues:
1. Revocation of leave granted to the appellant based on the premise of an incorrect order number.
2. Dispute regarding exemption from payment of central excise duty for industrial units in Uttarakhand.
3. Allegations of mala fide intentions by the Government of India in including specific land in the exemption notification.
4. Review petition filed by the Government of India challenging the High Court's order.
5. Interpretation of the High Court's jurisdiction in considering the review application.

Issue 1: The respondent filed an application for revocation of leave granted to the appellant due to an incorrect order number mentioned in the appeal. The High Court directed a review of the matter, considering the factual errors and the need for a fresh hearing of the review petition to ensure justice.

Issue 2: The dispute revolved around the exemption from central excise duty for industrial units in Uttarakhand. The Central Government issued notifications exempting certain units based on specific criteria related to the commencement of commercial production and capacity increase. The contention arose regarding the inclusion of new areas and the eligibility of existing units for the exemption.

Issue 3: Allegations of mala fide intentions were raised against the Government of India for including specific land in the exemption notification, depriving the respondent of the right to exemption from central excise duty. The government's policy not to entertain further requests for changes in the notification was challenged, leading to legal proceedings.

Issue 4: The Government of India filed a review petition challenging the High Court's order, seeking a fresh consideration of the review application. The court directed a reevaluation of the review petition to address the concerns raised by the parties regarding the exemption policy and the inclusion of specific land in the notification.

Issue 5: The interpretation of the High Court's jurisdiction in considering the review application was crucial. The Supreme Court set aside the High Court's order and directed a fresh hearing of the review petition, emphasizing the importance of considering the Central Government's policy on exempting new entrepreneurs from central excise duty. The parties were allowed to submit additional affidavits and documents for further consideration.