9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 127 - HC - Central ExciseArea based exemption - benefits under the Northeast Industrial Policy - N/N. 20/2008-Central Excise dated 27.03.2008 - HELD THAT - This petition is instituted on the grievance that the Notification dated 27.03.2008 having been restored as per the judgment of the Supreme Court, an application dated 01.04.2021 under Clause 3(1) of the Notification No.20/2008-Central Excise dated 27.03.2008 was submitted by the petitioner claiming for a special rate, but the same has not been given its consideration and without giving a due consideration to the claim for special rate made by the petitioners, the respondents now intend to make recovery on the premises that the refund of excise duty would be as per the rates provided in the Notification dated 27.03.2008. As the Notification dated 27.03.2008 provides for a legal right to the assessee to claim for a special rate to be fixed in the event of there being any add-ons to the goods manufactured, without an appropriate decision being taken on such claim for special rate, it would be inappropriate for the department to proceed against the petitioners as per the rates provided in the Notification dated 27.03.2008. This petition stands disposed of by directing the Principal Commissioner of GST Guwahati to consider the aforesaid application of the petitioner dated 01.04.2021 claiming for a special rate to be fixed on the basis of the add-ons made to the goods manufactured.
Issues:
Grant of exemption under Northeast Industrial Policy, Refund of excise duty, Application for special rate under Notification No.20/2008-Central Excise, Restoration of Notification post Supreme Court judgment, Consideration of special rate claim by GST department, Coercive measures for recovery of refund. Grant of Exemption under Northeast Industrial Policy: The petitioners, engaged in manufacturing UPVC Pipes, claimed benefits under the Northeast Industrial Policy entailing exemptions on excise duties. Initially, 100% refund was granted, but Notification No.20/2008-Central Excise altered this to specified rates for different goods categories. Refund of Excise Duty: The petitioners, under the altered Notification, could opt for a special rate by demonstrating actual value addition exceeding specified rates. A judgment set aside the Notification, restoring the 100% refund. However, a subsequent Supreme Court judgment reinstated the Notification, prompting the petitioners to apply for a special rate. Application for Special Rate under Notification No.20/2008-Central Excise: The petitioners submitted an application for a special rate post the Notification's restoration. They contended that without deciding on the special rate claim, the department should not proceed with recovery based on the Notification rates. Consideration of Special Rate Claim by GST Department: The petition raised concerns over the department's failure to consider their special rate application post the Notification's restoration. The Court directed the Principal Commissioner of GST to evaluate the application within six weeks and proceed with recovery measures only after determining the special rate. Coercive Measures for Recovery of Refund: The Court ordered the GST department not to take coercive measures for refund recovery until the special rate application is decided. The Principal Commissioner of GST was instructed to make a decision within six weeks to avoid any undue hardship on the petitioners. In conclusion, the writ petition was allowed to the extent that the Principal Commissioner of GST was directed to assess the special rate claim promptly, ensuring a fair resolution for the petitioners before initiating any recovery actions.
|
