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2019 (10) TMI 682 - CESTAT AHMEDABADSSI Exemption - N/N. 8/2003 - CE dt. 01.03.2003 - exemption denied to the Appellant on ground that the area falls under the jurisdiction of Jamnagar Development Authority (JADA) which is constituted for development of area falling outside the jurisdiction of Jamnagar Municipal Corporation - HELD THAT:- It is not in dispute that the area is falling under rural area of Jamnagar which is apparent from the certificate issued by the Revenue officer (Mamlatdar) who is having jurisdiction over the land. The Jamnagar Area Development Authority is only for the purpose of development of area and this in turn would not ipso facto change the status of land from rural to urban as apparent from Section 3 of Chapter - II of Gujarat Town Planning and Urban Development Act, 1976 as per which the State Government for the development of an area notify the same to be a development area. No evidence has been brought on record to show that the impugned area does not fall under rural area and therefore the denial of SSI exemption Notification is not based upon any evidence - This abundantly makes it clear that at the material time, the unit was situated in rural area and hence there is no reason to deny exemption benefit to Appellant. There is no reason to deny the SSI Exemption benefit to the Appellant and there is no reason to demand duty and penalty from Appellant unit - In case of co-appellants, we find that since the demand itself is not sustainable on merits, there is no reason to impose penalty upon them, Further there is no basis to impose penalty upon them when the Arbee Power is only owner of brand and Shri Kimjibhai is only raw material supplier. Appeal allowed - decided in favor of appellant.
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