Jindal Saw Ltd. Vs Union of India & Ors. (Gujarat High Court)
The Gujarat High Court allowed the writ petition challenging the show cause notice dated 17.09.2008 issued by the Commissioner of Central Excise seeking recovery of refund granted under Notification No. 39/2001-CE dated 31.07.2001, along with interest and penalty under Sections 11A, 11AB and 11AC of the Central Excise Act, 1944. The petitioner, a manufacturer of steel pipes and coated steel pipes operating a 100% Export Oriented Unit in Kachchh, had established a new industrial unit pursuant to the exemption notification issued to promote industrialisation in the earthquake-affected region of Gujarat.
The petitioner submitted that it fulfilled all conditions prescribed under the notification and obtained two eligibility certificates dated 28.07.2003 from the High Powered Committee constituted under the notification. The certificates confirmed that the petitioner had established a new unit within the prescribed period and certified the original value of investment in plant and machinery. After physical verification of the plant and machinery by departmental officers, the petitioner commenced commercial production on 29.07.2003. During the period from August 2003 to February 2008, the petitioner paid central excise duty amounting to ₹41,53,10,827, which was refunded in accordance with the notification after scrutiny by the jurisdictional authorities.
