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TMI Blog1983 (3) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... e of shifting of an industrial undertaking, with the prior approval of the Board, from an urban area to an area not being the area in which such undertaking is situate, at the rates computed in succeeding sub-sections. Section 280 ZB deals with grant of tax credit certificate to companies engaged in the manufacture or production of the articles mentioned in the First Schedule to the Industries (Development and Regulation) Act, 1951, in respect of its profits and gains attributable to such manufacture or production subject to such terms and conditions stipulated therein. Section 280 ZC deals with grant of tax credit certificates to persons who export any goods or merchandise out of India after the 28th day of February, 1965, and receives the sale proceeds thereof in India in accordance with the Foreign Exchange Regulation Act and the Rules made thereunder for an amount calculated at the rate not exceeding 15 per cent. on the sale proceeds. The relevant section for the purpose of this case is s. 280 ZD which deals with grant of tax credit certificate in relation to the increased production of certain goods. A person who manufactures or produces any goods in excess of the quantum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were presented before the Inspector of Central Excise for onward transmission to the Director of Inspection and Audit, Customs and Central Excise, New Delhi, after verification and countersigned by the circle officer. On June 10, 1967, the Excise Superintendent who is none other than the factory officer returned the applications for rectification of certain errors and to file correct statement so as to enable him to certify and transmit the same to the competent authority for necessary sanction. Considerable correspondence has taken place between the petitioner and the factory officer, regarding furnishing of particulars and verification in view of the varying rates of excise duty for different varieties of paper, for the purpose of figuration of " excess clearance " up to the end of the financial year. Without the verification and the counter-signature, Forms A and B could not have been presented before the competent authority. The delayed verification for the financial year 1966-67 resulted in further delay in filing an application for the succeeding year also. After the process was completed applications were represented on July 10, 1968, and July 20, 1968, for the years 1966-6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Government or of the Reserve Bank of India to exercise any rights or perform any duties in connection with the grant of the said certificates; (h) the goods or merchandise and the rate or rates for the purposes of section 280 ZC and section 280 ZD and the destination of the export of such goods or merchandise for the purposes of section 280 ZC ; (i) any other matter which may be necessary or proper for the effective implementation of the provisions of this Chapter or the scheme. " Section 280ZE except enabling the Central Govt. to frame a scheme of incentives for increased productivity in specified goods nowhere does it empower the Central Govt. to prescribe the period of limitation for claiming the benefit of this chapter. Any quantum of goods produced in any year which exceeds the quantum of goods for the base year, commencing from September 1, 1964, is eligible for the concession which is based upon customs duty imposed on the excise clearance. The goods in respect of which tax credit certificate can be granted and the rate at which the amount of such certificate has to be calculated are all matters of detail to be specified in the scheme. It is competent to the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed manner' occurring in section 8(4) of the Act only confers power on the rule-making authority to prescribe a rule stating what particulars are to be mentioned in the prescribed form, the nature and value of the goods sold, the parties to whom they are sold, and to which authority the form is to be furnished. But the phrase 'in the prescribed manner' in section 8(4) does not take in the time-element. In other words, the section does not authorise the rule-making authority to prescribe a time-limit within which the declaration is to be filed by the registered dealer." In Bharat Barrel Drum Manufacturing Co.'s case [1971] 40 FJR 339 (SC) the validity of the rule framed by the State of Bombay u/s. 96(1)(b) of the Employees' State Insurance Act, 1948, prescribing the period of limitation for claiming contribution was involved. The answer to this question would involve the determination of the further question whether the law relating to limitation is a procedural or substantive or partly procedural or partly substantive. At p. 346 it is stated thus : " It does not, therefore, appear that the statement that substantive law determines rights and procedural laws deal wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h matters as are specified in the section and such other ancillary or incidental matters thereto. Considering the scope and object with which such incentives are provided to assessees the right to claim grant of tax credit certificate on fulfilment of certain conditions mentioned therein cannot be termed as procedural but a substantive right. Right to claim adjustment of tax liability to the extent of the amount mentioned in the tax credit certificate and to claim refund in case the amount exceeds the tax liability or there is no liability, is a substantive right. Sub-paragraph (3) of para. 5 of the Scheme extinguishes the right conferred under this chapter which is not within the pale of procedure. This clause in the scheme instead of furthering the implementation of its object hinders its implementation. This clause will defeat the policy of the Legislature and serves no purpose. In the guise of framing a scheme, a substantive right conferred under this Act cannot be curtailed or nullified by prescribing the time-limit. When Parliament has not prescribed any period of limitation for claiming the benefits under this chapter it is not open to the Central Govt. to transgress beyond ..... X X X X Extracts X X X X X X X X Extracts X X X X
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