M/S Star Paper And Board Mill vs. The Union Of INDIA And 3 Ors

Held

The Court held that it would be appropriate for the departmental authorities to consider the petitioner's representation dated 11.07.2014, requesting the fixation of a special rate for excise duty refund. The Court reasoned that since the manufacturer had made such an application, it warranted consideration. Upon consideration, the authorities are to pass a reasoned order. If the request for a special rate is accepted, the excise duty refund to the petitioner will be guided by the special rate so fixed. The Court directed the Commissioner of Central Excise, Dibrugarh, as the jurisdictional officer, to consider the application and pass a reasoned order within one month of receiving a certified copy of the order. No coercive action is to be taken against the petitioner until this consideration and reasoned order are passed. The refund, once determined, will be governed by the authority's decision.

Facts

The petitioner, M/s Star Paper and Board Mill, sought a special rate for excise duty refund under the North East Industrial and Investment Promotion Policy (NEIIPP), 2007. Initially, a 100% excise duty exemption was granted by an Office Memorandum dated 01.04.2007. This was later modified by an Office Memorandum dated 10.06.2008, reducing the exemption rates. The petitioner's challenge to the 10.06.2008 notification was ultimately unsuccessful, with the Supreme Court upholding its validity. Separately, another notification dated 10.06.2008 allowed departmental authorities to fix special rates for refunds on 'ad-ons' for manufactured goods. The petitioner applied on 11.07.2014 to the Commissioner of Central Excise, Guwahati, requesting such a special rate.

Key Issues

1. Whether the departmental authorities are obligated to consider the petitioner's application dated 11.07.2014 for fixing a special rate for excise duty refund, as provided under notification No.38/08 dated 10.06.2008? Petitioner's contention: The petitioner argued that their application dated 11.07.2014, made in accordance with notification No.38/08 dated 10.06.2008, should be considered by the relevant departmental authorities. They sought a reasoned order on their request for a special rate to determine the excise duty refund. Revenue's contention: The judgment does not record any specific arguments made by the respondent GST Department regarding the consideration of the petitioner's application. However, the Court's direction implies that the revenue was expected to respond to the petitioner's plea.