Devashish Polymers Private ... vs Union Of India & Ors.
2017 Latest Caselaw 6583 Del

$~19
*    IN THE HIGH COURT OF DELHI AT NEW DELHI

+                           W.P.(C) 10104/2017

                                          Reserved on: 15th November, 2017
                                       Date of decision:20th November, 2017

       DEVASHISH POLYMERS PRIVATE LIMITED..... Petitioner
                    Through: Mr. Abhishek Rastogi, Ms. Rashmi
                             Deshpande and Mr. Gaurav Sharma,
                             Advocates.
                    versus

       UNION OF INDIA & ORS.                             ..... Respondents
                     Through:          Mr. Amit Bansal, Senior Standing
                                       Counsel for R-1 & 2.

       CORAM:
       HON'BLE MR. JUSTICE SANJIV KHANNA
       HON'BLE MS. JUSTICE PRATHIBA M. SINGH
                         ORDER

Prathiba M. Singh, J.:

CM APPL. 41316/2017 (Exemption) Allowed, subject to all just exceptions. The application accordingly, stands disposed of.

W.P.(C) 10104/2017 & CM APPL. 41315/2017 This writ petition was listed for admission on 15th November, 2017, on which date the Court had, after hearing some arguments, reserved the matter.

2. On the question of issue of notice, it was urged by the learned counsel for the petitioner that the petitioner had a vested right which had accrued in

its favour, for continuation of exemption from payment of both customs and excise duty, until the validity of registration granted to the petitioner's R&D centre by the Department of Scientific and Industrial Research, Ministry of Science & Technology, Government of India i.e., till 31.03.2019.

3. This Court is prima facie of the view that an exemption cannot be claimed as a matter of right in terms of the judgment of the Supreme Court in Union of India & Anr. Vs. Parameswaran Match Works & Ors. 1975 (1) SCC 305.

4. However, there is another aspect which requires examination. The petitioner claims to be a Non-commercial Research Institution recognized by the Department of Scientific and Industrial Research, Ministry of Science & Technology. Imports by Non-commercial Research Institutions are completely exempt from payment of customs duty as also payment of Integrated tax which is clear from a reading of Notification No.27/2017- Customs dated 30th June, 2017. However, insofar as local purchases made by Non-commercial Research Institutions are concerned, the exemption from payment of excise duty, stands rescinded vide Notification No.9/2017- Central Excise dated 30th June, 2017. The matter requires elucidation and the Government should respond as to the basis of the said rescission to Non- commercial Research Institutions.

5. In view of the above, the Court is of the opinion that notice should be issued to the respondents.

6. Issue notice to respondents. Counter affidavit would be filed within six weeks. Rejoinder affidavit within four weeks after the service of the counter affidavit.

7. List on 22nd January, 2018.

PRATHIBA M. SINGH, J

SANJIV KHANNA, J

NOVEMBER 20, 2017 j/r