Gauhati HC directs GST Commissioner to Consider application claiming for Special Rate to be fixed based on Add-ons made to Goods manufactured [Read Order]

Gauhati High Court - GST Commissioner - Taxscan

The Gauhati High Court directed the GST Commissioner to Consider an application claiming for a special rate to be fixed based on add-ons made to goods manufactured.

The petitioner, Ahinsha Chemicals Ltd. is a public limited company registered with the Central Excise Department and is engaged in the manufacture of certain excisable products namely instant tea and instant tea premises. The petitioner with the intention to have the benefits under the Northeastern Industrial Policy of 24.12.1997 had established a manufacturing unit within the Northeastern Region. As per the Northeastern Industrial Policy, the petitioner was earlier entitled to an exemption to excise duty to certain extent.

The petitioner submitted that the requirement of requesting for fixation of a special rate in respect of the value addition to the manufactured goods had arisen only after the final judgment of the Supreme Court on 22.04.2020, inasmuch, as long as the matter was pending before the Supreme Court and the interim order dated 07.12.2015 was in operation requiring a refund of 50% of the amount involved, no occasion had arisen for the assessee to claim for the fixation of a special rate in respect of the value addition to the manufactured goods. The dominant purpose of the two notifications i.e. amended notification No.32/99-CE dated 18.07.1999 and the notification No. 31/2008-CE dated 10.06.2008, is the bestowing of a legal right to the assessee to opt for the fixation of a special rate in respect of the value addition to a manufactured goods. The requirement that such applications are to be made not later than 30th day of September of the given financial year is a provision for streamlining the procedure for making such application and to avoid the situation where the process of making such applications would be a never ending matter.

The single judge bench of Justice Achintya Malla Bujor Baru noted that where the necessity for making of a request for fixation of the special rate for the value addition to the manufactured goods may not have occasioned earlier, we deem it appropriate that the Principal Commissioner of GST, Guwahati decides the application of the petitioner dated 28.09.2020 on its own merit as regards the claim for fixation of a special rate to the value addition to the manufactured goods of the given financial year.

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