Unicorn Industries V. The Union of India and The State of Sikkim

WP(C)/20/2008

AI Insights

The case involves a series of writ petitions filed by various industrial firms in Sikkim against the Union of India and the State of Sikkim, challenging the validity of notifications that withdrew excise duty exemptions previously granted under the New Industrial Policy. The petitioners argued that the withdrawal was arbitrary and violated the principles of promissory estoppel, as they had relied on the exemptions to make significant investments. The respondents contended that the modifications were necessary to prevent misuse of the exemptions and ensure that benefits reached only genuine manufacturers. The court examined the legal framework of the exemptions, the principles of promissory estoppel, and the public interest arguments presented by both sides.

• Counselvise Citation: [2010] 140 COUNSELVISE.COM (IT) 819510 (HC-SIKKIM)
• Appeal Type: Others
• Pronouncement Date: 15-11-2010
• Assessment Year: misc
• Other Referred Cases: Sal Steel Limited and Anr. vs. Union of India & Ors., U.P. Power Corporation Limited vs. Sant Steels & Alloys Pvt. Ltd. & Ors., Shree Sajjan Mills Ltd. vs. Commissioner of Income-Tax, M.P. Bhopal
• Laws Referred To: Central Excise Act, 1944, Additional Duties of Excise (Goods of Special Importance) Act, 1957, Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, Central Excise Rules, 2002
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A MOULIK; K D BHUTIA; KARMA THINLAY NAMGYAL; S K CHETTRI
• Assessee Lawyers: PARESH DAVE; CHETAN PANDYA; ASHIM CHHETRI
• Keywords: CENVAT credit; Excise duty exemption; Industrial Policy; Promissory Estoppel; Public interest
• Section: 2; 3; 4; 5A; 1

Judgement Text

"IN THE HIGH COURT OF SIKKIM AT GANGTol( (CIVIL EXTRA ORDINARY JURISDICTION) DATED : 15.11.2010 CORAM HON'BLE MR. JUSTICE P.D. DINAKARAN, CHIEF JUSTICE Writ Petition (C) No.11 of 2008 M/s Unicorn Industries A Partnership Firm Through it's Managing Partner, Shri Vedprakash Wadhwani, Khasra No. 786/1064, Mahjigaon, Jorethang Housing Road, Jorethang, South Sikkim-737121. ...Petitioner. Versus The Union of India, Its Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. The Commissioner of Central Excise, Siliguri Commissionerate, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, Notice to be served through: -.#-!-.-.....-. Jfa,: r/` 2010:SHC:78 The Superintendent of Central Excise, Rangpo Range, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). 4. State of sikkim (Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, Near Power Department, Gangtok, Sikkim. ...Respondents, For the petitioner : Mr. Paresh M. Dave, Mr. Chetan Pandya and Mr. Ashim Chhetri Advocates. Forthe respondents : Mr. A. Moulik, Sr. Advocate with Ms. K. D. Bhutia, Advocate for respondents No. 1, 2 and 3. Mr, Karma Thinlay Namgya], Government Advocate and Mr. S. K, Chettri, Assistant Government Advocate for respondent No.4. Writ Petition {C) No. 20 of 2008 Messrs Avinashi Industries, A Partnership firm having its factory and Address at Khasra No. 335(P), Near Vanaspati Factory, Manpur Via Melli Post Office, South Sikkim-737 128. Shri Bhagvanbhai Nagardas Patel, Partner of Messrs Avinashi Industries, Having his Address at C/o Messrs Avinashi Industries, 2010:SHC:78 Khasra No. 335(P), I #:anrp::#Ma:i,,Fg:tso[r6,ffice, , South Sikkim-737 128. I ...Petitioners Versus I TthseNUo:jj:ent%f5:dsj:fved through: I The Secretary, Ministry of Finance, I Department of Revenue, North Block, New Delhi. I The Commissioner of Central Exciie, Siliguri Commissionerate, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). The Deputy Commissioner of Cent[al Excise, S:t|8:°tkoB!evjs:°#:d through: I The Superintendent of Central Excise, Rangpo Range, C.R. Buildings, I Hakimpara, Haren Mukherjee Road, Siligurj (West Bengal). I 4. Stoat::e°tfos#::rvedthrough: I The Secretary, Department of Commerce and Inqustries, Government of Sikkim, fi:::xpeo::ruBdejggftment, , Gangtok, Sikkim .... ndspondents. For the petitioners : Mr. A.K. Upadhyaya, Sr. Advocate :it#e#,. A::::atcehshe[ri, Ms. Binita 2010:SHC:78 + For the respondents : Mr. A. Moulik, Sr. Advocate with Ms. K.D. Bhutia, Advocate for respondents No. 1, 2 and 3. Mr. Karma Thinlay Namgyal, Government Advocate and Mr. S. K. Chettri, Assistant Government Advocate for respondents No.4. Writ Petition (C) No. 22 of 2008 Messrs Sikkjm Organics, A Partnership firm having its Factory at Khasra No. 392 and 393 Manpur, P.O. Manpur, South Sikkim. Shri Sunil Jaiswal, S/o Shri C. K. Jaiswal, Managing Partner of Messrs Sikkim Organics, Having his address at C/o Messrs Sikkim Organics P,O. Manpur, South Sikkim-737 128. ...Petitioners Versus The Union of India, It's Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. The Commissioner of Central Excise, Siliguri Commissionerate, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, 2010:SHC:78 ' Notice to be served through: The Superintendent of Central Exc.ise, Rangpo Range, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). 4. State of sikkim Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, Near Power Department, Gangtok, Sikkim. ...Respondents. For the petitioners : Mr. A.K. Upadhyaya, Sr. Advocate with Mr. Ashim Chettri, Ms. Binita Chhetri, Advocates. Forthe respondents : Mr. A. Moulik, Sr. Advocate with Ms. K. D. Bhutia, Advocate for respondents No. 1, 2 and 3. Mr. Karma Thinlay Namgyal, Government Advocate and Mr. S. K. Chettri, Assist:ant Government Advocate for respondent No.4. 4. Writ Petition (C) No. 27 of 2008 Akshay Ispat and Ferro Alloys Private Ltd., A Company incorporated under the provisions of The Registration of Companies Act, Sikkim 1961 And having its registered office and factory at Mamring, Dist. Namchi, South Sikkim-737132. Shri J.D. Jalan, Son of Late V.N. Jalan, Director, Akshay Ispat & Ferro Alloys Ltd., 2010:SHC:78 +fry Residing at Rangpo, East Sikkim. Both represented by their constituted Attorney Shri Bhjkhjm Chand Periwal, Son of Late Kedarmul Periwal, Resident of M.G. Marg, P,O. & P,S. Gangtok, East Sikkim. „.Petitioners Versus 1. Theunionoflndia, Its Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. The Commissioner of Central Excise, Siliguri Commissionerate, C.R, Buildings, Hakimpara, Haren Mukher].ee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, Notice to be served through: The Superintendent of Central Excise, Rangpo Range, C,R. Buildings, Hakimpara, Haren Mukheriee Road, Siliguri (West Bengal). 4. State of sikkim Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, Near Power Department, Gangtok, Sikkim. ...Respondents, •+ife----.---.- 2010:SHC:78 For the petitioners For the respondents : Mr. Sudesh Joshi and Ms. Manita Pradhan, Advocates : Mr. A. Moulik, Sr. Advocate with Ms. K. D. Bhutia, Advocate for respondents No. 1, 2 and 3. Mr, Karma Thinlay Namgyal, Government Advocate and Mr. S. K. Chettri, Assistant Government Advocate for respondent No.4. Writ Petition (C) No. 13 of 2009 M/s Promising Exports Limited, Cresent Tower-229, J.C. Bose Road, 2nd Floor Suit # 2A, Kolkata-700020. Having its industrial unit at Manpur, Khatiyan No. 25, Khasra No. 334 & 335, South Sikkim-737132. Shri Sushil Kumar Ha[wai, Son of Shri Shyam Sundar Halwai, R/o 37 VIP Road, Natural Height, Block-8, Room No. 2C, Kolkata-52 Director, M/s Promising Exports Ltd., ...Petitioners Versus The union of India, It's Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. The Commissioner of Central Excise, Si]igurjcom`missionerate, C.R. Buildings, )-..al .. 2010:SHC:78 Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, It's Notice to be served through: The Superintendent of Central Excise, Rangpo Range, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). 4. State of sikkim It's Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, Near Power Department, Gangtok, Sikkim. ...Respondents. For the petitioners : Mr. A.K. upadhyaya, Sr. Advocate with Mr. Ashim Chettri, and Ms. Binita Chhetri, Advocates Forthe respondents : Mr. A. Moulik, Sr. Advocate with Ms. K.D. Bhutia, Advocate for respondents No. 1, 2 and 3, Mr. Karma Thjnlay Namgyal, Government Advocate and Mr. S. K. Chettri, Assistant Government Advocate for respondent No.4. Writ Petition (C) No. 17 of 2009 Godrej Consumer Products Ltd., A Company incorporated under the provisions of the Companies Act, 1956 and having its registered office at Pirojshanagar, Eastern Express Highway, Vikhroli, Mumbai-400 079 and factory at 2010:SHC:78 Mamring, Dist. Namchi, South Sikkim-737132, Shri M.G. Subramaniam, Son of Shri M.K. Ganapathy, Shareholder of: Godrej Consumer Products Ltd., Resident of Block No. N, Rajeswari, Road No. 17, Chembur, Mumbai-400 071. ...Petitioners Versus The Union of India, It's Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. The Commissioner of Central Excise, Siliguri Commissionerate, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, Notice to be served through: The Superintendent of Central Excise, Rangpo Range, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). 4. State of sikkim Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, ' Near Power Department, Gangtok, Sikkim. ...Respondents. 2010:SHC:78 tr 10 Forthe petitioners : Mr. Sudesh Joshi and Ms. Manita Pradhan, Advocates For the respondents 7. : Mr. A. Moulik, Sr. Advocate with Ms. K.D, Bhutia, Advocate for respondents No. 1, 2 and 3. Mr. Karma Thinlay Namgyal, Government Advocate and Mr. S.K. Chettri, Assistant Government Advocate for respondent No.4. Writ Petition (C) No. 22 of 2009 M/s JNRT Commercial Pvt. Ltd., A Private Limited Company incorporated under the Registration of Companies Act, 1956 Having its registered office at 9/12 Lal Bazar Street, 1St Floor, Merchantile Building, Block-A Kolkata, W.B.-700001. Mr. Rajen Sharma, S/o Manorath Sharma, Poudyal Niwas, Sichey, Gangtok (Share Holder & Director of JNRT Commercial Pvt. Ltd.) „.Petitioners Versus The Union of India, Its Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. idr-...-.... 2010:SHC:78 11 The Commissioner of Central Excise, Siliguri Commissionerate, C.R. Buildings, Hakimpara, Haren Mukher].ee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, Notice to be served through: The Superintendent of Central Excise, Rangpo Range, C.R. Bu'ildings, Hakimpara, Haren Mukheriee Road, Siliguri (West Bengal). 4. State of sikkim Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, Near Power Department, Gangtok, Sikkim. ...Respondents, Forthe petitioners : Mr. Zangpo Sherpa and Mr. Pem Tshering Lepcha, Advocates Forthe respondents : Mr. A. Moulik, Sr. Advocate with Ms. K.D. Bhutia, Advocate for respondents No. 1, 2 and 3. Mr. Karma Thinlay Namgyal, Government Advocate and Mr. S. K. Chettri, Assistant Govern ment Advocate for respondents No.4. Writ Petition (C) No. 23 of 2009 M/s Epitome Petrochemical Pvt, Ltd,, A Private Limited Company incorporated Under the Registration of Companies Act, 1956 2010:SHC:78 12 Having its registered office at 16, Ganesh Chandra Avenue, Kolkata, W.B.-700013. Mr. Rajen Sharma, S/o Manorath Sharma, Poudyal Niwas, Sichey, Gangtok (Share Holder & Director of JNRT Commercial Pvt. Ltd.) ...Petitioners Versus The Union of India, Its Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. The Commissioner of Central Excise, Siliguri Commissionerate, C,R, Buildings, Hakimpara, Haren Mukher].ee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, Notice to be served through: The Superintendent of Central Excise, Rangpo Range, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). 4. State of sikkim Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, Near Power Department, Gangtok, Sikkjm. ...Respondents. 2010:SHC:78 +, ]3 Forthe petitioners : Mr. Zangpo Sherpa and Mr. Pem Tshering Lepcha, Advocates Forthe respondents : Mr. A. Moulik, Sr. Advocate with Ms. K.D. Bhutia, Advocate for respondents No. 1, 2 and 3. Mr. Karma Thinlay Namgyal, Government Advocate and Mr. S. K. Chettri, Assistant Government Advocate for respondent No.4. Writ Petition (C} No. 37 of 2010 Sikkim Agro Chem Pvt. Ltd. A Company incorporated under the Provisions of the Registration of Companies Act, Sikkim 1961 And having its registered office and Factory at Majitar, East Sikkim. Shri Sandip Ki]Ia, S/o Shyam Sundar Killa, Director of Sikkim Agro Chem Pvt. Ltd., Residing at Majitar, East Sikkim. ...Petitioners Versus The Union of India, Its Notice to be served through: The Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi. 2. The commissioner of central Excise, Siliguri Commissionerate, 2010:SHC:78 14 C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). The Deputy Commissioner of Central Excise, Gangtok Division, Notice to be served through: The Superintendent of Central Excise, Rangpo Range, C.R. Buildings, Hakimpara, Haren Mukherjee Road, Siliguri (West Bengal). 4. State of sikkim Notice to be served through: The Secretary, Department of Commerce and Industries, Government of Sikkim, Annexe I Building, Near Power Department, Gangtok, Sikkim, ...Respondents. Forthe petitioners : Mr. Sudesh Joshi and Ms. Manita Pradhan, Advocates Forthe respondents : Mr. A. Moulik, Sr. Advocate with Ms. K.D. Bhutia, Advocate for respondents No. 1, 2 and 3. Mr. Karma Thinlay Namgyal, Government Advocate and Mr. S. K. Chettri, Assista nt Govern ment Advocate for respondent No.4. 2Ei? 2010:SHC:78 Dinakaran, CJ 15 JUDGMENT The common issue that arises in this batch of writ petitions is - Whether the respondent-State (herein called the Revenue) is justified by issuing Notification No.23/2008-Central Excise dated 27.03,2008 and Notification No.37/2008-Central Excise dated 10.06.2008 jn withdrawing the exemption granted in the payment of duty for utilization towards the CENVAT credit/casli conferred upon the petitioners/assessees by Notification No. 71/2003-Centrtal Excise dated 09.09.2003, namely, General Exemption No. 518 and Office Memorandum dated 01.04.2007 in File No. 10(3)/2007-DBA-II/NER, both issued by the Government of India exercising the powers conferred under Section 5A of the Central Excise Act, 1944? 1.2 In this regard, it is apt to refer to Section 5A of the Central Excise Act, 1944, which empowers the Central Government to grant exemption from duty of excise, which reads as hereunder: ``5A. Power to grant exemption from duty of excise. -(1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the CIficial Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be specified in the notification, excisable goods of any specified description from the whole or any part of the duty of excise leviable thereon: Provided that, unless specifically provided in such notification, no exemption therein shall apply to excisable goods which are produced or manufactured - 2010:SHC:78 ]6 _ i I_ (i) in a free trade zone or a special economic zone and brought to any other place in India; or (ii) by a hundred per cent, export-oriented undertaking and brought to any other place in India. Exp/anafi.on : In this proviso, \"free trade zone\", \"special economic zone\" and \"hundred per cent export-oriented undertaking\" shall have the same meanings as in Exp/anal/.on 2 to sub-section (1) of section 3. (1A) For the removal of doul)ts, it is hereby declared that where an exemption under sub- section (1) in respect: of any excisable goods from the whole of the duty of excise leviable thereon has been granted absolutely, the manufacturer of such excisab]e goods shall not pay the duty of excise on such goods. (2) If the Central Government is satisfied that it is necessary in the public so to do, it may, by special order in each case, exempt from payment of duty of excise, under circumstances of an exceptional nature to be stated in such order, any excisable goods on which duty of excise is leviable. (2A) The Central Government may, if it considers it necessary or expedient so to do for the purpose of clarifying the scope or applicat)ility of any notification issued under sub-section (1) or order issued under sub- section (2) insert an explanation in such notification or order, as the case may be, by notification in the Official Gazette at any time within one year of issue the notification under sub-section (1) or order under sub- section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be. exemption under sub-section (1) or sub-section in respect of any excisable goods from any part of duty of excise leviable thereon (the duty of excise leviable thereon being hereinafter referred to as the statutory duty) may be granted by providing for the levy of a duty on such goods at a rate expressed in a form or method different from the form or method in which the statutory duty is leviable and any exemption granted in relation to any excisable goods in the manner provided in this sub-section shall have effect subject to the condition that the duty of excise chargeable on such goods shall in no case exceed the statutory duty. Exp/anal/.on: \"Form or method\", in relation to a rate of duty of excise means the basis, namely, valuation, weight, number, length, area, volume or other measure witll reference to which the duty is leviable. E#`-`-.-..--... 2010:SHC:78 + 17 (4) Every notification issued under sub-rule (1), and every order made under sub-rule (2) of rule 8 of the Central Excise Rules, 1944, ancl in force immediately before the commencement of the Customs and Central Excise Laws (Amendment) Act, 1987 shall be deemed to have been issued or made under the provisions of this section and shall continue to have the same force and effect after such commencement until it is amended, varied, rescinded or superseded under the provisions of this section. (5) Every notification issued under sub-section (1) [or sub-section (2A) shall, - (a) unless otherwise provided, come into force on the date of its issue by the Central Government for publication in the Cfficial Gazette; (b) also be published and offered for sale on the date of its issue by the Directorate of Publicity and Public Relations, Customs and Central Excise, New Delhi, under the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963). (6) Notwithstanding anything contained in sub-section (5), where a notification comes into force on a date later than the date of its issue, the same shall be published and offered for sale by the said Directorate of Publicity and Public Relations on a date on or before the date on which the said notification comes into force.\" (emphasis supplied) 2.1 In view of the core issue raised in the above batch of writ petitions, suffice it to consider the submissions made by both the sides, namely, the petitioners/assessees. and the respondents/revenue on the question of law, referred to above, instead of referring to the facts of the individual cases. 2.2.1 By notification dated 09.09.2003 as well as the Office Memorandum dated 01.04.2007, referred to above, the 2010:SHC:78 + 18 petitioners/assessees were granted certain exemptions from the Central Excise Duty and the same reads as hereunder: - 2.2.2 ``9th September, 2003 Notification No. 71/2003 -Central Excise In exercise of the powers conferred by sub- section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than goods specified in Annexure I appended hereto, and cleared from a unit located in the Industrial Growth Centre or Industrial Infrastructure Development Centre or Export Promotion Industrial Park or Industrial Estate or Industrial Area or Commercial Estate or Scheme Area, as the case may be, in the State of Sikkim, specified in Annexure - 11 appended hereto, from so much of the duty of excise or additional duty of excise, as the case may be, leviable thereon under any of the said Acts as is equivalent to the amount of duty paid by the manufacturer of the said goods, other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2002. 2. In cases where all the goods produced by a manufacturer are eligible for exemption under this notification, the exemption contained in this notification shall be available subject to the condition that, the manufacturer first utilizes whole of the CENVAT credit available to him on the last day of the month under consideration, for payment of duty on goods cleared during such month and pays only the balance amount in cash. 3. The exemption contained in this notification shall be given effect to in the following manner, namely:- (a) The manufacturer shall submit a statement of the duty paid, other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2002, to the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, by the 7th day of the next month in which the duty has been paid. 2010:SHC:78 * 19 (b) The Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, shall, after such verification, as may be deemed necessary, refund the amount of duty paid, other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2002, during the month under consideration to the manufacturer by the 15th day of the next month: Provided trlat in cases where the exemption contained in this notification is not applicable to some of the goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of goods cleared under this notification. (c) If there is likely to be any delay in the verification, the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, shall refund the amount on provisional basis by the 15th day of the next month to the month under consideration, and thereafter may adjust the amount of refund by such amount as may be necessary in the subsequent refunds admissible to the manufacturer. 4. Notwithstanding anything contained in paragraph 2,- (a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his account current, maintained in terms of Part V of the Excise Manual of Supplementary Instruction issued by the Central Board of Excise and Customs. Such amount credited in the accoiint current may be utilised by the manufacturer for payment of duty in the manner specified under rule 8 of the Central Excise Rules, 2002, in subsequent months, and such payment shall be deemed to be paid in cash: Provided that where the exemption contained in this notification is not applicable to some of the goods produced by a manufacturer, the amount of such credit shall not exceed the amount of duty paid less the amount of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of goods cleared under this notification. (b) the credit of duty paid during the month under consideration, other than by way of utilisation of ±8±.--.``.--.`-. 2010:SHC:78 20 CENVAT credit under the CENVAT Credit Rules, ::c°o2JnFacyurE:n::k;79hyeth7ethmd:?ufoafcttuhr:r+nonh[: following the month under consideration. (c) a manufacturer who intends to avail of the option under clause (a), shall exercise his option in writing for availing of such option before effecting the first clearance in any financial year and such option shall be effective from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year: Provided that, for the financial year 2003-2004, a manufacturer can exercise his option on or before the30th day of September, 2003. (d) the manufacturer shall submit a statement of the duty paid, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, along with the refund amount which he has taken credit and the calculation particulars of such credit taken, to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, by the 7th day of the next month to the month under consideration. (e) the Deputy commissioner of central Excise or the Assistant Commissioner of Central Excise, as the case may be, shall, after such verification, as may be deemed necessary, determine the amount correctly refundable to the manufacturer and intimate the same to the manufacturer by the 15th day of the next month to the month under consideration. In case the credit taken by the manufacturer is in excess of the amount determined, the manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from the said account current maintained by him. In case, the credit taken by the manufacturer is less than the amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount. (i) in case the manufacturer fails to comply with the provisions of clauses (a) to (e), he shall forfeit the option, to take credit of the amount of duty during the month under consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his account current on his own, as provided for in clauses (a) and (c). (g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly refundable under clause (e) and not i,,ife±---`... 2010:SHC:78 `~ 21 reversed by the manufacturer within the period specified in that clause, shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods shall be considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess credit. Exp/anal/.on.-For the purposes of this notification, duty paid, by utilisation of the amount credited in the account current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT Credit Rules, 2002. 5. The exemption contained in this notification shall apply only to the following kinds of units namely:- (i) new industrial units which have commenced commercial production on or after the 23rd day of December, 2002, but not later than the 31st day of March, 2007; (ii) Industrial units existing before the 23rd day of December, 2002, but which have undertaken substantial expansion by way of :nwcer::ys_ef,j:;::::::.::P::I?ftebrythne°t2!erdssdatyhaonf December, 2002, but have commenced commercial production from such expanded capacity, not later than the 31st day of March, 2007. 6. The exemption contained in this notification shall apply to any of the said units for a period not exceeding I:en years from the date of publication of this notification in the Offlclal Gazette or from the date of commencement of commercial production, whicriever is later. ANNEXuRE-I 1. Tobacco and Tobacco products including Cigarettes/ Cigars/ Gutkha ; 2. Branded Aerated beverages; 3. Pollution causing paper and paper products.\" 2010:SHC:78 dr) 2.2.3 22 \"North East Industrial and Investment Promotion Policy, 2007 File No,lo (3)/2007-DEIA-II/NER Government of India Ministry of Commerce and Industry Department of Industrial Policy and Promotion **** New Delhi, Dated the lst April 2007. OFFICE HEMORANDUM Subject: North East Industrial and Investment Flromotion Policy (NEIIPP), 2007 The Government has approved a package of fiscal incentives and other concessions for the North East Region namely the `North East lndilstrial and Investment F.romotion Policy (NEIIPP), 2007', effective from 1.4.2007, which, inter-alia, envisages the following: (i) Coverage: The North East lndustnal Policy (NEIP), 1997 annouiiced on 24.12.1997 covered the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. Under NEIIPP, 2007, Sikkim will also be included. Consequently, the `New Industrial Policy and other concessions for the State of Sikkim' announced vide O.M. No.14(2)/2002-SPS dated 23.12.2002 ancl the Schemes thereunder i.e. Central Capital Investment Subsidy Scheme, 2002, Central Interest Subsidy Scheme, 2002 and Central Comprehensive Insurance Scheme, 2002, notlfied vide Notifications No. F.No.14(2)/2002-SPS dated the 24.12.2002 will be discontinued from 1.4.2007. (ii) Duration: All new units as well as existing units which go in for substantial expansion, unless otherwise specified and which commence commercial production within the 10 year period from the date of notification of NEIIPP, 2007 will be eligible for incentives for a period of ten years from I:he date of commencement of commercial production. (iii) Netitrality Of location: Incentives will be available to all industrial units, new as well as existing units on their substantial expansion, located anywhere in the North Eastern Region. Consequently, the distinction between `thrust' ancl `non-thrust' industries made in NEIP, 1997 will be discontinued from 1.4.2007. (ij--.` 2010:SHC:78 23 (iv) Substantial Expansion: Incentives on substantial expansion will be given to units effectina `an increase bv not less than 25°/o in the value of fixed-capital investment in plant and machinery for the purpose of expansion of capacity/modernization and diversification', as against an increase by 331/2 0/a which was prescribed in NEIP, 1997. (v) Excise Duty Exemption: 100% Excise Duty exemption will be continued, on finished products made in the North Eastern Region.. as was available under NEIP, 1997. However, in cases, where the CENVAT paid on the raw materials and intermediate products going into the production of finished products (other than the products which are otherwise exempt or subject to nil rate of duty) is higher than the excise duties payable on the finished products, ways and means to refund such overflow of CENVAT creclit will be separately notified by the Ministry of Finance. (vi) Income Tax Exemption: 100% Income Tax exemption will continue under NEIIPP, 2007 as was available under NEIP, 1997. (vii) Capital Investment Subsidy: Capital Investment Subsidy will be enhanced from 15% of the investment in Dlant and machinerv to 30% and the limit for automatic approval of subsidy at this rate will be Rs.1.5 crores per unit, as against Rs.30 lakhs as was available under NEIP, 1997. Such subsidy will be applicable to units in the private sector, joint sector, cooperative sector as well as the units set up by the State Governments of the North Eastern Region. For grant of Capital Investment Subsidy higher than Rs.1.5 crore but upto a maximum of Rs.30 crores, there will be an Empowered Committee Chaired by Secretary, Department of Industrial Policy & Promotion with Secretaries of Department of Development of North Eastern Region (DONER), Expenditure, Representative of Planning Commission and Secretary of the concerned Ministries of the Government of India dealing with the subject matter of that industry as its members as also the concerned Chief Secretary/Secretary (Industry) of the North Eastern State where the claiming unit is to be located. Proposals which are eligible for a subsidy higher than Rs.30 crores, will be placed by Department of Industrial Policy and Promotion before the Union Cabinet for its consideration and approval. 2010:SHC:78