Case Title | Union Of India VS V.V.F Ltd |
Court | Supreme Court Of India |
Honorable Judges | Justice Arun Mishra Justice B.R. Gavai |
Citation | 2020 (04) GSTPanacea 43 HC Supreme Court Civil Appeal No. 2256-2263 Of 2020 |
Judgement Date | 22-April-2020 |
The Supreme Court has granted leave in a set of Special Leave Petitions (SLPs), specifically Civil Appeals @ SLP © Nos. 28194-28201 of 2010. These appeals collectively address common legal questions and factual issues stemming from a shared judgment and order delivered on 10.03.2010 by the High Court of Gujarat at Ahmedabad. This judgment pertains to several Special Civil Applications: 5909/2008, 6300/2008, 6298/2008, 6299/2008, 5907/2008, 8468/2008, 6334/2008, and 6562/2008.
The appellants express dissatisfaction with the aforementioned judgment, which favored the respondents, the original writ petitioners. The High Court, through its decision, upheld the respondents’ petitions, declaring the impugned policy of benefit/incentive withdrawal as retrospective, not retroactive. Consequently, the High Court invalidated and annulled Notification 16/2008 dated 27.03.2008.
Given the shared legal issues and factual background across these appeals, the Supreme Court has decided to address and dispose of them through a unified judgment and order.
The Union of India has filed the present appeals on the grounds that the doctrine of promissory estoppel should not be invoked. The appeals stem from events following a devastating earthquake that struck the Kutch District in the State of Gujarat on 26.01.2001, causing significant infrastructure damage and casualties.
In response to the disaster and with the aim of revitalizing the affected region, the Government of India introduced an Incentive Scheme to encourage the establishment of new industries in the earthquake-affected Kutch District. This scheme was formalized through Central Excise Exemption Notification No. 39/2001-CE dated 31.07.2001. Under this notification, new industrial units set up in Kutch District before 31.07.2003 (later extended to 31.12.2005) were granted exemptions from excise duty equivalent to the amount paid in cash or through the Personal Ledger Account (PLA) on finished goods. This incentive, in the form of duty refunds, was available for a period of five years from the start of commercial production.
The primary objective of this Incentive Scheme was to attract substantial investment into Kutch District, thereby stimulating economic recovery and generating employment opportunities. The government aimed to achieve this by encouraging entrepreneurs to establish new industries in the region, thus fostering economic growth and job creation in Kutch.
The notification in question aimed to incentivize industrial development in a particular district to integrate it more effectively with the national economy. It outlined the operational procedures for the incentive scheme as follows:
a) Eligibility criteria required that a unit produce a certificate from a High-Powered Committee, consisting of the Chief Commissioner of Central Excise and the Chief Secretary to the Government of Gujarat. This certificate validated that the unit was indeed a new industrial establishment established on or after the date specified in the Exemption Notification, initially set as July 31, 2003, but later extended to December 31, 2005.
b) Additionally, the unit had to provide a declaration detailing the investment value in plant and machinery installed within the factory premises as of the date of commercial production. This declaration needed certification by the Committee, confirming the original investment value.
c) The procedure for claiming refunds involved submitting a statement of total duty payments, including those made through Cenvat Credit utilization, to the relevant Central Excise Authority. The authority was tasked with verifying these claims within a specified timeframe.
d) The notification also stipulated provisions for recovering any excessive refunds claimed or granted, along with accruing interest, if the value of the plant and machinery was found to be misrepresented or exceeded the eligible criteria.
Overall, the notification aimed to encourage industrial investment and development in the specified district, facilitating its integration into the broader national economic framework.
The notification in question aimed to incentivize industrial development in a particular district to integrate it more effectively with the national economy. It outlined the operational procedures for the incentive scheme as follows:
a) Eligibility criteria required that a unit produce a certificate from a High-Powered Committee, consisting of the Chief Commissioner of Central Excise and the Chief Secretary to the Government of Gujarat. This certificate validated that the unit was indeed a new industrial establishment established on or after the date specified in the Exemption Notification, initially set as July 31, 2003, but later extended to December 31, 2005.
b) Additionally, the unit had to provide a declaration detailing the investment value in plant and machinery installed within the factory premises as of the date of commercial production. This declaration needed certification by the Committee, confirming the original investment value.
c) The procedure for claiming refunds involved submitting a statement of total duty payments, including those made through Cenvat Credit utilization, to the relevant Central Excise Authority. The authority was tasked with verifying these claims within a specified timeframe.
d) The notification also stipulated provisions for recovering any excessive refunds claimed or granted, along with accruing interest, if the value of the plant and machinery was found to be misrepresented or exceeded the eligible criteria.
Overall, the notification aimed to encourage industrial investment and development in the specified district, facilitating its integration into the broader national economic framework.
The notification in question aimed to incentivize industrial development in a particular district to integrate it more effectively with the national economy. It outlined the operational procedures for the incentive scheme as follows:
a) Eligibility criteria required that a unit produce a certificate from a High-Powered Committee, consisting of the Chief Commissioner of Central Excise and the Chief Secretary to the Government of Gujarat. This certificate validated that the unit was indeed a new industrial establishment established on or after the date specified in the Exemption Notification, initially set as July 31, 2003, but later extended to December 31, 2005.
b) Additionally, the unit had to provide a declaration detailing the investment value in plant and machinery installed within the factory premises as of the date of commercial production. This declaration needed certification by the Committee, confirming the original investment value.
c) The procedure for claiming refunds involved submitting a statement of total duty payments, including those made through Cenvat Credit utilization, to the relevant Central Excise Authority. The authority was tasked with verifying these claims within a specified timeframe.
d) The notification also stipulated provisions for recovering any excessive refunds claimed or granted, along with accruing interest, if the value of the plant and machinery was found to be misrepresented or exceeded the eligible criteria.
Overall, the notification aimed to encourage industrial investment and development in the specified district, facilitating its integration into the broader national economic framework.
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