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2018 (8) TMI 1835 - AT - Central ExciseBenefit of Notification No. 1/2010-C.E., dated 6-2-2010 - Area based exemption under N/N. 56/2002-C.E., dated 14-11-2002 availed - substantial expansion of the unit - Revenue is of the view that as the respondent has once opted for exemption under Notification No. 56/2002-C.E., dated 14-11-2002, therefore, the respondent is not entitled to avail the benefit of Notification No. 1/2010-C.E., dated 6-2-2010 - C.B.E. C. Circular No. 977/01/2014, dated 3-1-2014 - HELD THAT - As It has been clarified that the Respondent is entitled to benefit of Notification No. 1/2010-C.E., dated 6-2-2010, it is immaterial whether they have claimed the benefit of Notification No. 56/2002-C.E., dated 14-11-2002 or not. Therefore, the Respondent has correctly availed the benefit of Notification No. 1/2010-C.E., dated 6-2-2010 and refund claims sanctioned to the Respondent are in order. Appeal dismissed - decided against Revenue.
Issues:
1. Interpretation of Notification No. 1/2010-C.E., dated 6-2-2010 regarding excise duty exemption. 2. Entitlement of the Respondent to claim the benefit of Notification No. 1/2010-C.E., dated 6-2-2010 after availing benefits under Notification No. 56/2002-C.E., dated 14-11-2002. Issue 1: Interpretation of Notification No. 1/2010-C.E., dated 6-2-2010 regarding excise duty exemption The Appellate Tribunal CESTAT CHANDIGARH heard an appeal by the Revenue against an order granting the benefit of Notification No. 1/2010-C.E., dated 6-2-2010 to the Respondent, who were engaged in the manufacture of Rosin & Terpene. The Revenue argued that since the Respondent had previously availed benefits under Notification No. 56/2002-C.E., dated 14-11-2002, they were not entitled to claim the benefits of the later notification. However, the Tribunal referred to a circular clarifying that an existing unit could avail of the exemption under Notification No. 1/2010-C.E., dated 6-2-2010 after substantial expansion, even if they had previously claimed benefits under Notification No. 56/2002-C.E., dated 14-11-2002. The Tribunal held that the Respondent correctly availed the benefit of the later notification, and the refund claims were valid. Consequently, the Tribunal dismissed the Revenue's appeal. Issue 2: Entitlement of the Respondent to claim the benefit of Notification No. 1/2010-C.E., dated 6-2-2010 after availing benefits under Notification No. 56/2002-C.E., dated 14-11-2002 The central question in this issue was whether the Respondent, having previously availed benefits under Notification No. 56/2002-C.E., dated 14-11-2002, could still claim the benefit of Notification No. 1/2010-C.E., dated 6-2-2010 due to further expansions. The Revenue contended that since the Respondent had already utilized the earlier exemption, they were not eligible for the subsequent one. However, the Tribunal relied on a circular clarifying that an existing unit could avail of the later exemption after substantial expansion, irrespective of previous benefits claimed. Citing this clarification, the Tribunal held that the Respondent had the right to benefit from Notification No. 1/2010-C.E., dated 6-2-2010, regardless of their prior claims. Consequently, the Tribunal upheld the Respondent's entitlement and dismissed the Revenue's appeal. ---
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