news details |
|
|
| HC exempts SSI from excise duty | | | EARLY TIMES REPORT
JAMMU, Dec: 27: The High Court today exempted Small Scale Industrial units (SSI) from excise duty. The order was passed by Justice Sunil Hali in a bunch of petitions filed by SSI unit holders seeking 100 percent exemption from payment of Excise Duty, The court court disposed off the petitions with the direction that the petitioner-units shall avail the benefit of exemption from payment of excise duty as provided in terms of the notification No.56/2002-CE dated 14th of Nov’02. and quashed the order 19/2008-CE dated 27th of March’08, and 34/2008-CE dated 10th of June’08 with further directions to the respondents that they shall be at liberty to take appropriate action in accordance with the relevant rules against those unscrupulous manufacturers who are involved in illegal activities of alleged bogus production.
The petitioners submitted that the Central Government felt the need for structured intervention strategies to accelerate industrial development of the State and boost investor confidence. Vide Notification June14 2002, issued by the Ministry of Commerce & Industry, Government of India; some new initiatives were taken to provide incentives as well as an enabling environment for industrial development in the State. The policy provided various fiscal incentives to new industrial units as also to those existing units engaged in substantial expansion. As a measure of fiscal incentives, the Government approved conversion of growth center into total tax free zones for a period of ten years from the date of commencement of commercial production.
Vide notifications impugned No.19/2008-Central Excise dated 27th of March’2008, and 34/2008-Central Excise dated 10th of June’08, further amendments have been carried out in the original notification, by the Central Government, whereby the excise duty refund has been restricted to a maximum limit. The said notifications changed the entire scenario by reducing the 100% exemption provided by the earlier notifications to a limited percentage in respect of different goods manufactured by the units. Aggrieved by these notifications the petitioner’s units challenged and filed bunch of petitions and seeking quashment of the said notifications.
The court after hearing the parties and after perusal of records and Supreme Court rulings, observed that the contention raised by the petitioners is the impugned notifications are prospective in nature and would not cover those units who are engaged in industrial activities and availing certain incentives in terms of the earlier notification issued in 2002, which has to remain in force for a period of ten years from the date of its issuance. In this regard, reliance has been placed by the petitioners on the provisions of Section 38 A of the Act of 1944. Court need not to enter into this arena as the writ petitions are being disposed of without addressing this controversy. For the reasons mentioned above, these petitions are allowed. Impugned notifications bearing Nos.19/2008-CE dt. 27th of March’08, and 34/2008-CE dt. 10th of June’08, shall stand quashed. The petitioner-units shall continue to avail the benefit of exemption from payment of excise duty as provided in terms of the notification No.56/2002-CE dt. 14th of Nov’02. The respondent-State, however, shall be at liberty to take appropriate action in accordance with the relevant rules against those unscrupulous manufacturers who are involved in illegal activities of alleged bogus production. JNF
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
|
|
STOCK UPDATE |
|
|
 |
| BSE
Sensex |
 |
| NSE
Nifty |
|
|
| |
CRICKET UPDATE |
|
|
|
|
| |
| |
|
|
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
