TaxTMI 
TaxTMI 
2015 (1) TMI 539
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....alidity and propriety thereof, to quash and set aside the impugned action on the part of the Committee consisting of Respondent No. 2 and 3 rejecting the Application for issue of Certificate under the said Notification as communicated to the Petitioners vide letter dated 12th April, 2007 (Annexure-M hereto); (c) that this Hon'ble Court be pleased to issue a Writ of Mandamus, or a Writ in the nature of Mandamus, or any other appropriate Writ, Order or direction, directing the Respondents by themselves, their servants and agents :- (i) to forthwith withdraw the said impugned communication dated 12th April, 2007 (Annexure-M hereto); (ii) to issue Certificate to the Company in terms of Condition 3(ii) of the said Notification; (iii) to allow the Company to avail the benefit of the said Notification (Annexure-A hereto) in respect of all clearances of excisable goods from the new unit set up by the Company in Kutchh at the address mentioned hereinabove by availing the exemption in terms of the said Notification until 30th December, 2010 or such other period as may be extended by the Central Government from t....
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....5, the petitioners are entitled to the exemption/benefits, as contained in the Notification No. 39/2001-C.E., on the commercial production out of the investment made for the aforesaid plant and machineries. It is submitted that, as such, the petitioners have fully commissioned and installed the plant and machineries and have started manufacturing/production of cast iron articles prior to 31-12-2005. It is, therefore, submitted that considering the aggregate investment made by the petitioners with respect to both the products, i.e. cast iron and Pig Iron, and as the investment was more than Rs. 20 crore, i.e. in the present case Rs. 24.30 crores, the petitioners were entitled to exemption/benefits contained in the Notification No. 39/2001-C.E., for a period of five years from the date of first commercial production. It is submitted that, therefore, denial of the exemption/benefits contained in the Notification No. 39/2001-C.E., by the respondent is absolutely illegal, arbitrary and contrary to the aforesaid Notification. It is submitted that even with respect to the manufacturing of cast iron articles, the petitioners have been denied the exemption/benefits under the Notification No....
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....and machineries was commissioned prior to 31-12-2005 for production/manufacture of cast iron. It is, thus, submitted that the petitioners shall not be entitled to the exemption/benefits, as contained in Para 2 of the Notification No. 39/2001-C.E. 7. Now, so far as challenge to the clarification contained in the Circular No. F. No. 332/07/2006-TRU, dated 25-4-2006, issued by the Director (TRU), clarifying that if the commercial production of a particular kind of specified goods is not commenced on, or before, 31-12-2005, there again the benefit of the Notification No. 39/2001 would not be available to such goods, it is submitted that in the present case, such a situation does not arise. It is submitted that in the present case, as such, the unit/plant and the machineries for the production of Pig Iron was not commissioned and or installed (Fully) prior to 31-12-2005. It is submitted that the aforesaid clarification shall be applicable only in a case, where, the Unit has been commissioned and the plant and machineries have been installed prior to 31-12-2005 and that for whatever reasons, there was no commercial production prior to 31-12-2005. It is submitted that therefore the ....
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....t-up for manufacture of Pig Iron after 31-12-2005, and therefore, even the commencement of commercial production of such Unit of Pig Iron was after 31-12-2005. In the above back-drop, the question which is posed for the consideration of this Court is, as to whether the petitioner shall be entitled to the exemption/benefits under the Notification No. 39/2001 on manufacture/production of cast iron articles and Pig Iron or not? 9. As such, the identical question came to be considered by the Division Bench of this Court in the case of "M/s. Plastene India Ltd." (supra) and considering the very Scheme and the Notification No. 39/2001, this Court has held and observed as under; "(5.2) Now, so far as the reliance placed upon the Circular No. 110/21/2006-CX.3, dated 10-7-2008 by the petitioners is concerned, it is absolutely misplaced. Under the aforesaid clarificatory circular, it is mentioned that in case a unit introduces the new product manufactured from raw material by installing fresh plant and machinery after the cut-off date i.e. 31-12-2005, in such a situation, exemption would not be available to the said new product and the said new product would be cleared on payment....
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.... the date of commencement of the first commercial production of such goods on such unit. Under the circumstances, the concerned respondent are required to consider the case of the petitioner for grant of the benefit under the Notification No. 39/2001 with respect to the production/manufacture of cast iron articles, considering the observations made herein above and the decision of this Court in the case of "M/s. Plastene India Ltd." (Supra). 12. Now, so far as challenge to the clarificatory Circular, dated 25-4-2006, issued by the Director (TRU), clarifying that, if, the commercial production of a particular kind of specified goods has not commenced prior to 31-12-2005, there again the benefit of such notification would not be available to the such goods, is concerned, so far as the claim of the petitioner with respect to the Pig Iron is concerned, as stated and observed herein above, said situation may not arise, as industrial Unit was not commissioned and the plant and machineries were not installed (Fully) prior to 31-12-2005. So far as the grant of benefits with respect to the same Scheme contained in the Notification No. 39/2001 on manufacturing/production of cast iron i....