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2018 (4) TMI 1085 - CESTAT ALLAHABADArea Based Exemption - N/N. 50/2003-CE - establishment of a new unit (Unit II) by appellant - denial on the ground that Greenply did not commence commercial production (in Unit II) on or before 31st March 2010 and hence not eligible for the exemption - Clause-a of Para-2 of the Notification. Held that: - what is required in terms of Clause-a, is that the new industrial unit should have commenced commercial production not later than 31st day of March 2010 - all the produced documents are undisputed and part of the records of the court below, clearly establish that the Unit-II of the appellant for manufacture of MDF Board etc., had commenced commercial production before 31st of March 2010. The appellant is eligible for exemption for a period of 10 years for its Unit-II with effect from 30 March, 2010 - not only commercial production was commenced on 30 March, 2010, the appellant have also made clearances of MDF board on 31 March, 2010, to Raghuraji Agro Industries Pvt. Ltd. Further the stock of MDF boards with appellants brand were found at the premises of the said Raghuraji Agro Industries Pvt. Ltd. during follow-up investigation and drawl of Panchnama on 21 June, 2010. The verification report of the Superintendent of Central Excise Mr. A.K. Ashthana also supports the commencement of commercial production and that production was going on when he visited during the middle of April 2010 when semi-finished goods were being converted into finished goods - Further it is evident that the total power available with the appellant drawn from the electric company plus from the captive DG sets were sufficient for production in the new Unit-II from 30 March, 2010. Further, installation of plant and machinery have been completed much before 31 March, 2010 which is not disputed and supported by the intimations given to the Department in the month of March 2010 prior to commencement of commercial production. The learned Commissioner have selectively relied upon the evidence on record, thus his findings are vitiated - the appellant is entitled for exemption under the Notification No. 50/2003 – CE for its new Unit–II for a period of 10 years from 30 March, 2010 - appeal allowed - decided in favor of appellant.
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