D.B. Power Limited vs Union Of India & Ors on 14 August, 2025

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Delhi High Court - Orders

D.B. Power Limited vs Union Of India & Ors on 14 August, 2025

Bench: Prathiba M. Singh

                          $~50
                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +              W.P.(C) 8073/2023
                               D.B. POWER LIMITED                       .....Petitioner
                                             Through: Mr. Rajshekhar Rao, Sr. Adv. with Mr.
                                                        Vineet Tayal & Ms. Nishtha Wadhwa,
                                                        Advs.

                                                                  versus

                                    UNION OF INDIA & ORS.                                                .....Respondents
                                                  Through:                            Mr. Anurag Ojha, SSC with Mr. Dipak
                                                                                      Raj, Adv. for R-2.

                                    CORAM:
                                    JUSTICE PRATHIBA M. SINGH
                                    JUSTICE SHAIL JAIN
                                             ORDER

% 14.08.2025

1. This hearing has been done through hybrid mode.

CM APPL. 50274/2025

2. This is a fresh application seeking stay of invocation of the Bank Guarantees dated 31st August, 2012 and 12th March, 2013, (hereinafter "the subject Bank Guarantees") which have been furnished by the Petitioner to the Government of India.

3. Vide letter dated 11th August, 2025 issued by the Assistant Commissioner, Central Goods and Services Tax and Central Excise, Division- III(Anand), Vadodara-I, the subject Bank Guarantees have been proposed to be appropriated/ encashed by the Department.

4. The present writ petition has been filed challenging the impugned Office Memorandum dated 10th March, 2023 issued by the Ministry of Finance, Government of India. Vide order dated 15th July, 2025 the present W.P.(C) 8073/2023 Page 1 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 23:44:22 writ petition was considered along with W.P.(C) 9187/2023 titled M.B. Power (Madhya Pradesh) Limited v. Union of India, Ministry of Finance & Ors., and the same were disposed of in the following terms:

"3. Vide the office memorandum, the Department of Revenue inter alia directed that, where the period of 120 months has expired in respect of the Central Excise Duty exemption and the Mega Power Projects certificates for all goods cleared at the exempted rate of Excise Duty have not been submitted, proportional duty would be recoverable. The relevant portion of the office memorandum is extracted hereunder:

"It may also be noted that in cases where the extended period of 120 months has expired in respect of the Central Excise duty exemption and the Mega Power Project certificates for all goods cleared at the exempted rate of Excise duty have not been submitted, proportional duty is now recoverable."

4. The Petitioners in effect sought extension of the period of exemption from payment of excise duty for Mega Power Projects from 120 months to 156 months. The prayers in the writ petition are as under:

"(i) Call for the records of the Case,

(ii) Issue a writ of certiorari or any other appropriate writ, order or direction, setting aside Respondent No. I's Office Memorandum dated 10.03.2023 (Annexure P-1), wherein it stipulates that where the period of 120 months has expired in respect of the Central Excise Duty exemption and the Mega Power Projects certificates for all goods cleared at the exempted rate of Excise Duty have not been submitted, W.P.(C) 8073/2023 Page 2 of 9 This is a digitally signed order.

(iii) Issue a writ of mandamus or any other appropriate writ, order or direction directing the Respondents to issue a corresponding circular for Excise Duty, as has been issued for Custom Duty [being Notification No. 31/2022-Customs dated 07.06.2022 (Annexure P-19)] ie. extending the period for furnishing the final mega power status certificate, by 36 months ie.. from a period of 120 months to a period of 156 months exemption, for purposes of availing Excise Duty

(iv) Pass any other or further order as this Hon'ble Court may deem fit in the facts and circumstances of the present case, as also in the interest of justice."

5. Notice was issued in W.P. (C) 8073/2023 on 1st June, 2023. The petition, W.P. (C) 9187/2023 was tagged with the said petition on 12th July, 2023. Thereafter, the ld. ASG was also requested to assist the Court in the matter. However, on 11th August, 2023, the recovery proceedings were directed to be kept in abeyance. The relevant portion of the order dated 11th August, 2023 is extracted hereunder:

"Learned ASG has placed for our perusal a copy of an order dated 07 August 2023 in terms of which a decision appears to have been taken to keep all recovery proceedings in abeyance pending reexamination of the issue by the Board. A copy of the said order is placed on the record."

6. On 12th March, 2025 time was sought on behalf of the Ministry of Power to file an affidavit. Accordingly, on the said date, the following directions W.P.(C) 8073/2023 Page 3 of 9 This is a digitally signed order.

"5. The affidavit of the Ministry of Power is not on record. Considering the same, let the concerned official of a level not below the Deputy Secretary of the Ministry of Power remain present before this Court on the next date of hearing.

6. It also appears from the record that the Union of India has to take a comprehensive and a coordinated decision between the Department of Revenue, Ministry of Finance and Ministry of Power. For the said purpose, let a meeting be held between the concerned officials of the said Departments so that the stand of the Union of India in this regard can be placed on record by the next date of hearing.

7. List on 29th April, 2025.

8. Interim orders to continue."

7. It was finally on 15th April, 2025 that the Ministry of Power filed an affidavit. The said affidavit has been sworn by Mr. Somraj who is stated to be working as an Assistant Director at the Central Electricity Authority, Ministry of Power, Sewa Bhawan, R.K. Puram, New Delhi - 110066. In the said affidavit, it is stated as under:

"4. It is to submit that as per the direction of the Hon'ble Court, a meeting was held on 24.03.2025, under the chairmanship of Joint Secretary (Thermal), Ministry of Power (respondent no.3) and the same was attended by the Director, Department of Revenue, Ministry of Finance on behalf of respondent no.l and other officials from both the ministries. The Minutes of Meeting is attached at Annexure-R3/I. W.P.(C) 8073/2023 Page 4 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 23:44:22

5. It is to further submitted that the representative of Department of Revenue, Ministry of Finance (respondent no.l) has confirmed in the said meeting that the time period has already been extended to 156 months for excise duty benefits for provisional mega projects through an amendment to the Finance Act, 2024. A copy of the same is attached at Annexure

-R3/2.

6. As the instant petition is filed before the this Hon'ble Court with a prayer to extend the period for furnishing the final mega power certificate from a period of 120 months to 156 months for the purpose of availing Excise Duty exemption which has already been fulfilled with the said amendment to the Finance Act, 2024 whereby the period has been extended from 120 months to 156 months, and therefore, the instant petition becomes infructuous."

8. In terms thereof, the Department of Revenue, vide an amendment to the Finance (No. 2) Bill, 2024 has recorded that the time period for excise benefits has been extended to 156 months, for mega power projects.

9. The said Bill has also recorded the exemption under 5th Schedule to the Central Excise Act retrospectively. The said amended 5th Schedule under the Central Excise Act reads as under:

"

W.P.(C) 8073/2023 Page 5 of 9

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 23:44:22 "

10. 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.

11. In view thereof, no further orders are sought for by the Petitioner. The petitions are accordingly dismissed."

5. The present application has been filed aggrieved by the aforesaid proposed appropriation of the subject Bank Guarantees by the Department on the ground that the Petitioner has not submitted the Mega Power Project Certificate within a period of 156 months. The relevant portion of the letter dated 11th August, 2025 reads as under:

"1t is pertinent to mention that as per Office Memorandum issued vide F. No. A-3/2015-IPC dated 12.04.2017, the Power project was allotted to M/s. DB Power Ltd. on 28.11.2011.

In this context, as per the Notification No. 12/2012 W.P.(C) 8073/2023 Page 6 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 23:44:22 Central Excise dated 17.03.2012(as amended) vide which Mega Power Projects were provided conditional exemption from Central Excise duty on various goods. As per the Mega Power Project Policy 2009 developers needs to furnish the Completion certificate of the Project to the tax authority was 36 Months which was further extended to 60 Months by Cabinet Committee on Economic Affairs vide their letter dated 02. 01 2014. Further, as per the Notification No. 08/2017 -CE dated 16.05. 2017(amending notification 12/2012-CE), time for submission of completion of mega power project certificate issued by Ministry of Power, was extended up to 120 months. Further, as per the Finance Act 2024, this period was extended to 156 Months. However, it is noticed that extended Period of 156 Months has expired and the completion of Mega Power Project Certificate as stipulated vide Notification No. 12/2012 (Sr. No. 337 & 338) for goods cleared after availing exemption from excise duty have not been submitted by M/s DB Power Limited. Therefore, applicable duty as per tariff act 1985, is now recoverable.

2. Further, it is to inform that as per telephonic conversation, the above said matter was briefed to the officials of M/s. DB Power Ltd. namely, Mr. Parnay. In response, Mr. Alpesh Patel & Mr. Jignesh Patel, the officials of M/s. DB Corp. Ltd., both working as DGM (Finance & Accounts), in M/s. DB Corp. Ltd. visited this office on 31.07.2025. Mr. Alpesh Patel informed that they are here to discuss this matter on behalf of M/s. DB Power Ltd. It is pertinent to mention that M/s DB Power Ltd. & M/s. DB Corp Ltd. both pertains to Danik Bhasker (DB) Group. Mr. Alpesh Patel & Mr. Jignesh Patel were briefed about this issue and on being specifically inquired about the completion certificate after lapse of due period of 156 months and any stay order, no satisfactory answer was received from their end. They were further requested to submit the W.P.(C) 8073/2023 Page 7 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 23:44:22 Completion Certificate at the earliest failing which this office shall proceed to encash the Bank Guarantee submitted to you to recover the Govt. Dues.

3. It was requested vide mail dated 31.07.2025 by M/s. DB Power Ltd., to restrain from invoking the above referred Bank Guarantees. The Judgement order dated 15.07.2025 passed by the Hon'ble High Court of Delhi in W.P(C)No. 8073/2023-D. B Power Ltd. v Union Bank of India & Others, was forwarded to this office in their support, however on perusal of the same, it is not forthcoming that any stay order has been explicitly granted in case of nonproduction of completion certificate after lapse of 156 months.

4. Even after lapse of 10 days of their visit as mentioned above, M/s. DB Power Ltd. has not furnished any stay order as well as completion certificate. As, this office is duty bound under Central Excise Act, 1944 for safeguarding Government Revenue, therefore, it is requested to appropriate the Bank Guarantees No. 2035IFIBG120088 Dated 31.08.2012 & 2035IPEBG130061 dated 12.03.2013 (Original Bank Guarantees are enclosed herewith) and send the Demand Draft to this office in favoring: -

The Assistant Commissioner, Division-VIII(Anand) CGST and Central Excise Building 1st Floor, Central Excise Building, Near Juna Dadar, Anand-388001. Your early and prompt action is highly appreciable as this involves Government revenue."

6. Mr. Rajshekhar Rao, ld. Senior Counsel for the Petitioner submits that the period of 156 months is to be counted from the date of clearance of goods and not in the manner in which the letter dated 11th August 2025 purports to interpret the submission of Completion Certificate.

7. A copy of the present application has been supplied to Mr. Anurag W.P.(C) 8073/2023 Page 8 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 23:44:22 Ojha, ld. Senior Standing Counsel for the Department. Let him seek instructions and make submissions on the next date.

8. The question as to from when the 156 months is to be counted, deserves consideration. As per Mr. Rao, the subject Bank Guarantees are still valid. Accordingly, subject to the condition that the subject Bank Guarantees shall be kept alive, it is directed that the subject Bank Guarantees of the Petitioner shall not be invoked, encashed, or appropriated till the next date of hearing.

9. List on 21st August, 2025.

10. Dasti.

PRATHIBA M. SINGH, J.

SHAIL JAIN, J.

AUGUST 14, 2025 kk/msh W.P.(C) 8073/2023 Page 9 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 14/08/2025 at 23:44:22

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Delhi High Court - Orders