Civil Appeal No. 1914 of 2009 - (1.) : On 27-10-1996, the Prime Minister of the country made a statement at Guwahati that new initiatives would be announced for the industrial development of the North-Eastern region. Pursuant to the said statement, an Office Memorandum dated 24-12-1997 was issued by the Ministry of Industry, Department of Industrial Policy and Promotion, Government of India, by which, inter alia, a tax holiday, including exemption from central excise duty, was promised to eligible units for a period of 10 years from the date of commencement of commercial production.
(2.) In exercise of powers under Section 5A of the Central Excise Act, 1944 (hereinafter referred to as 'Act'), notification dated 8-7-1999 was issued exempting the class of eligible units from payment of, inter alia, central excise duty and additional duties of excise for a period of 10 years from the date of publication of the notification in the Official Gazette or from the date of commencement of commercial production, whichever is later. The aforesaid notification under Section 5A of the Act was made applicable to the North-Eastern States of Assam and Tripura. Thereafter, amendments were made to the notification dated 8-7-1999 on 1-3-2000 and 29-3-2000 by which the notification dated 8-7-1999 was made applicable to different areas of the State of Meghalaya in which the unit of the respondent was located.
(3.) The respondent went into commercial production w.e.f. 14-7-1999. As benefit of exemption was not granted from the said date, the respondent approached the High Court seeking appropriate orders for grant of exemption w.e.f. date of commercial production and not from the date of the later notifications dated 1-3-2000 and 29-3-2000 extending the exemption notification dated 8-7-1999 to the State of Meghalaya. The writ petition and the appeal arising therefrom were answered in favour of the respondent giving rise to the present proceedings before this Court.;