2026 (4) TMI 605

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....nd, for a period of ten years from the date of commencement of commercial production. 2. In the interregnum, Notification No. 01/2010-CE dated 06.02.2010 came to be issued, whereby certain specified goods manufactured and cleared from units located in the erstwhile State of Jammu & Kashmir were exempted from excise duty. The said exemption was also available to new industrial units or to the industrial units existing before 06.02.2010 which had undertaken substantial expansion by way of increase of not less than 25% in the value of fixed capital investment in plant and machinery or had made new investments in terms of the prescribed conditions. 3. The petitioner completed the substantial expansion of its unit and commenced commercial production with effect from 26.05.2015 and, on the recommendation made by the District Industries Centre, the General Manager, DIC, Jammu acknowledged the said date of production as 26.05.2015 in favour of the petitioner. 4. Thereafter, upon the roll out of the GST regime with effect from 01.07.2017, the Government of India rescinded Notification No. 56/2002 dated 14.11.2002 and Notification No. 01/2010-CE dated 06.02.2010 vide Notification No....

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....er Goods and Services Tax in terms of Notification SRO 519 and SRO 521 dated 21.12.2017 issued by the erstwhile State Government. 9. The petitioner further applied for budgetary support for the residual period under the Central Notification dated 05.10.2017. In pursuance thereof, an inspection team constituted by the Department of Industrial Policy and Promotion (DIPP) inspected the unit of the petitioner in terms of Clause 6 of the said Notification dated 05.10.2017 and returned findings in favour of the petitioner-unit, holding the petitioner to be eligible for entitlement to the budgetary support benefits under the said notification. 10. It is further stated that the petitioner, through various communications, applied for reimbursement of budgetary support for the periods corresponding to 09.04.2018, 11.04.2018, 14.07.2018, 15.10.2018, 15.01.2019, 15.04.2019, 12.07.2019, 15.10.2019, WP(C) No. 956/2023 c/w WP(C) No.953/2023 Page 5 of 11 21.01.2021 and 15.04.2021 before the concerned State Tax Authorities. 11. The respondent rejected the claim of the petitioner for reimbursement under the Budgetary Support Scheme on the ground that the item M.S. Scrap does not fall within....

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.... claims submitted by the petitioner for the subsequent periods, namely 2018-19, 2019-20 and 2020-21, also included tax paid on the sale of scrap. However, upon due scrutiny of the reimbursement claims, only the amount admissible under the scheme was allowed and the eligible refund amount was accordingly released in favour of the petitioner 14. Learned counsel for the petitioner, Mr. Chug, submitted that the manufacturing process for TMT bars inherently produces nonstandard sized pieces alongside standard products. These pieces are subsequently sold as M.S. Scrap. He further contends that the respondent is not justified in refusing reimbursement, as the scrap in question arises from the same manufacturing process as the standard products and remains materially and functionally similar, notwithstanding its non-standard size. Learned counsel further submitted that the Central authorities have been allowing reimbursement to the petitioner even on the sale of scrap; however, the respondent, without any justification, has declined to grant reimbursement on the ground that the petitioner is registered only for manufacturing specified products. He has drawn the attention of this Court t....

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....illage Industries Board/Small Scale Industries Development Corporation Limited (SICOP)/J&K Industrial Development Corporation (SIDCO), except those goods which are mentioned in Annexure-A to the said Notification. Annexure-A of the Notification specifies eighteen (18) categories of goods that are expressly excluded from the purview of the scheme. They are as under:- 1. Repacked goods. 2. Wooden shook's 3. Bricks and Tiles 4. Copper utensils manufactured by mechanized units. 5. Soft drinks. 6. Edible Oil and Vanaspati ghee 7. Screen printing of glazed tiles. 8. Cutting and stitching of doormat out of coir, jute and décor (wall to wall) 9. Cutting of marble/granite 10. Repair and servicing of Automobiles. 11. Sweetmeats (excluding toffees candy etc.) 12. Cycles/Tricycles. 13. Cured skins 14. Roasted peanuts and Dry Fruits 15. Televisions, Air Conditioners, Refrigerators and Washing Machines, when assembles and manufactured by the industrial units located in the State and sold under the brand name of other products. 16. Tobacco and its ....