2025 (7) TMI 1261 - HC - Central Excise

Challenge to office memorandum dated 10th March 2023 - period of 120 months has expired in respect of the Central Excise Duty exemption - Mega Power Projects certificates for all goods cleared at the exempted rate of Excise Duty not submitted - HELD THAT - The Government having already accepted the extension to 156 months for excise benefits for mega power projects the relief sought in the present petitions has been satisfied. In view thereof no further orders are sought for by the Petitioner. The petitions are accordingly dismissed.

Summary

ISSUES:

Whether the period of exemption from payment of Central Excise Duty for Mega Power Projects can be extended beyond 120 months to 156 months.Whether the office memorandum dated 10th March, 2023 directing recovery of proportional duty after expiry of 120 months without submission of Mega Power Project certificates is valid.Whether a writ of certiorari or mandamus can be issued to set aside the office memorandum and direct extension of the exemption period for excise duty benefits in line with the extension granted for customs duty.

RULINGS / HOLDINGS:

The Court held that the relief sought for extension of the excise duty exemption period from 120 months to 156 months has been effectively granted by an amendment to the Finance Act, 2024, which extended the period for excise duty benefits for Mega Power Projects to 156 months.The office memorandum dated 10th March, 2023, which directed recovery of proportional duty after expiry of 120 months, became infructuous in light of the statutory amendment extending the exemption period.The petitions challenging the office memorandum and seeking extension of the exemption period were dismissed as the Government had already accepted and implemented the extension through the Finance (No. 2) Bill, 2024 and corresponding amendments to the Fifth Schedule of the Central Excise Act.

RATIONALE:

The Court applied constitutional writ jurisdiction under Articles 226 and 227 to examine the validity of the office memorandum and the statutory framework governing excise duty exemptions for Mega Power Projects.The legal framework included the Central Excise Act, relevant notifications, and the Finance Act amendments, specifically the Finance (No. 2) Bill, 2024, which retrospectively amended the exemption period from 120 to 156 months.The Court recognized the principle that statutory amendments supersede executive instructions such as office memoranda, rendering the latter ineffective where inconsistent.The coordinated decision-making process between the Department of Revenue, Ministry of Finance, and Ministry of Power was noted, with the Court emphasizing the importance of inter-departmental coordination in such matters.No dissent or doctrinal shift was recorded; the judgment reflects adherence to established principles of statutory interpretation and administrative law.