Point of Law : Doctrine of substantial compliance is a judicial invention, equitable in nature, designed to avoid hardship in cases where a party does all that can reasonably be expected of it, but failed or faulted in some minor or inconsequent aspects which cannot be described as the “essence” or the “substance” of the requirement.

JUDGMENT :

Heard Mr. D.Sahu, the learned counsel for the Petitioner, Mr. Girin Pegu, the learned counsel appearing on behalf of the Respondent No. 1 and Mr. S.C. Keyal, the learned Standing Counsel for the GST Department.

2. The present writ petition under 226 of the Constitution has been filed challenging the Order No.02/SR/(09-10/10-11/11-12/12-13/13-14/14-15/15-16/16-17/17-18/18-19/PR.COMMR.2021-22 dated 5/8/2021 and for a direction to the Respondent Nos. 2 and 3 to expedite the proceedings relating to special rate fixation and not to initiate any recovery proceedings till the special rate asserted by the Respondent No. 2.

3. The case of the petitioner in brief is that the Petitioner firm is an industrial unit carrying on manufacturing of M.S. Ingot falling under CETSH-72 of the Central Excise Tariff Act, 1985. The Government of India, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion vide the Office Memorandum dated 1/4/2007 announced the North East Industrial and Investment Promotion Policy (NEIIPP), 2007. In terms with the said industrial policy of the year 2007, various exemptions were assured to all new units as well as existing units which go in for substantial expansion, unless otherwise specified and which commence commercial production within the 10 years period from the date of the notification of the industrial policy, i.e. NEIIPP, 2007 for a period of 10 years from the date of commercial production. The location of the new as well as the existing industrial units carrying out a substantial expansion had to be in the North Eastern Region. The said industrial policy also stipulated that incentives on substantial expansion will be given to units effecting “an increase by not less than 25% in the value of the fixed capital investment in the plant and machinery for the purpose of expansion of the capacity/modernization and diversification” as against an increase of 33½ % which was prescribed in the earlier North East Industrial Policy, 1997. As regards excise duty exemption, it was stipulated that 100% excise duty exemption will be continued, on finished products manufactured in the North Eastern Region, as was available under the North East Industrial Policy,1997. However, in the cases where the CENVAT paid on the raw materials and intermediate products going into the production of finished products(other than the products which are otherwise exempt or subject to nil rate of duty) is higher than the excise duties payable on the finished products, ways and means to refund such overflow of CENVAT credit will be separately notified by the Ministry of Finance. In terms with the said industrial policy of 2017, the Central Excise Exemption which was granted under the North East Industrial Policy, 1997 vide the Notification Nos. 32/1999-CE and 33/1999-CE, both dated 8/7/1999 as amended from time to time were continued and a Notification No. 20/2007-CE dated 25/4/2007 was issued. The Petitioner which as already stated hereinabove, was in the business of manufacturing M.S. Ingot expanded its production capacity to avail the benefits under the Industrial Policy of 2007 and the incentives and exemptions granted therein. The Petitioner was allotted the Central Excise Registration No.AAEFN5081AXM001 and commenced its commercial production after its expansion w.e.f. 12/11/2013. It is the further case of the Petitioner in the writ petition that as the Petitioner’s industrial unit being an eligible unit, the Petitioner continued to avail exemption.

4. At this stage, it may be relevant to mention that the Government of India, Ministry of Finance in exercise of the powers conferred under Sub-Section (1) of Section 5A of the Central Excise Act. 1944 issued the Notification No. 20/2007-CE, dated 25.4.2007, whereby exempted the Goods specified in the First Schedule to the Central Excise Tariff Act, 1985 other than those goods mentioned in Annexure to the said Notification. The terns for availing the said exemp