2009 (9) TMI 148 - HC - Central Excise

Petitioners have challenged the constitutional validity of Notification No. 2/2005-C.E. (N.T.), and Notification No. 4/2005 Central Excise (N.T.) dated 23rd February 2005 on the ground that in the neighbouring States, exemption has been granted to the manufacturers of patent or proprietary medicaments and not patented medicaments. - petitioner s plea is that notification ibid directly affects the petitioners right to carry on business - The power to grant exemption rests with the Central Government and for the purposes of development of any particular area or State, if the Central Government grants exemption from levy of excise duty to any manufacturer or any particular industry, it can not be said to affect the fundamental right guaranteed to the petitioners under Article 19(1)(g) of the Constitution of India. petition dismissed - petitioners may approach the Central Government for grant of exemption to their products

Summary

The High Court of Allahabad dismissed the petition challenging excise duty notifications, stating that granting exemptions is within the Central Government's power and does not violate the petitioners' right to carry on business under Article 19(1)(g) of the Constitution of India. The petitioners were advised to approach the Central Government for exemptions.