JUDGMENT :

SANJEEV NARULA, J.

Brief Facts

1. The Petitioner is engaged in the business of manufacturing of two wheelers in the State of Uttarakhand. It was operating and registered under the Central Excise Act, 1944. With the introduction of Goods and Services Tax (“GST”) w.e.f. 01.07.2017, it now has registration under the said Central and State GST Acts.

2. In the year 2002, special packages of incentives were announced to promote industrial development in the State of Uttarakhand. In pursuance thereto, the 1st Respondent- Union of India through the 4th Respondent- Ministry of Commerce & Industry issued an Office Memorandum dated 07.01.2003, detailing the package of incentives. The fiscal incentive provided under the memorandum included 100% ab inito Central Excise Duty Exemption to new industrial units for a period of 10 years from the date of commencement of commercial production. The relevant extract of Office Memorandum/Policy read as under:

"3.1 Fiscal Incentives to new Industrial Units and to existing units on their substantial expansion:

(1) New industrial units and existing industrial units on their substantial expansion as defined, set up in Growth Centres, Industrial Infrastructure Development Centres (IIDCs), Industrial Estates, Export Processing Zones, Theme Parks (Food Processing Parks, Software Technology Parks, etc.) as stated in Annexure-I and other areas as notified from time to time by the Central Government, are entitled to:

(a) 100% (hundred percent) outright excise duty exemption for a period of 10 years from the date of commencement of commercial production.

(b) 100% income tax exemption for initial period of five years and thereafter 30% for companies and 25% for other than companies for a further period of five years for the entire states of Uttaranchal and Himachal Pradesh from the date of commencement of commercial production.

(II) All New Industries in the notified location would be eligible for capital investment subsidy @ 15% of their investment in plant & machinery, subject to a ceiling of Rs. 30 lakh. The existing units will also be entitled to this subsidy on their substantial expansion, as defined. (III) Thrust Sector Industries as mentioned in Annexure-II are entitled to similar concessions as mentioned in para 3 (I) & (II) above in the entire state of Uttarakhand and Himachal Pradesh without any area restrictions."

3. In line with the objective of the above noted memorandum and in order to implement the incentive scheme, the Central government, on being satisfied that it is necessary in the public interest, issued Notification No. 50/2003- C.E, dated 10.06.2003 (hereinafter referred to as “exemption notification”) in exercise of powers conferred by sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944) read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of Section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978). This notification exempted certain goods from whole of the duty of excise, or additional duty of excise, as the case may be, leviable thereon under any of the said Acts, in respect of certain industrial units located in the State of Uttarakhand (earlier Uttaranchal) and Himachal Pradesh. The notification also provided that the exemption shall apply to industrial units for a period not exceeding 10 years from the date of publication of notification in the Official Gazette or from the date of commencement of commercial production, whichever is later.

4. Since the Petitioner’s unit qualified for exemption under the aforementioned notification, it established a new industrial unit for manufacture of motor vehicles at Haridwar, Uttarakhand and commenced commercial production in its industrial unit from 07.04.2008 and continued to avail the benefits of the exemption notification till 01.07.2017.

5. Then, the Constitution 101st Amendment Act, 201