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2023 (4) TMI 257 - CESTAT KOLKATAExemption to new Industrial Unit - Benefit of N/N. 20/2007-CE dated 25.04.2007 - commencement of commercial production on 31.03.2017, or not - the investigation concluded that the Appellant was not a new industrial unit as per the said Notification and not eligible for availing exemption under N/N. 20/2007 dated 25.04.2007 as amended - tow units with same partners in the same premises - HELD THAT:- The documentary evidences submitted by the Appellant listed in para 4 above clearly indicate that they have commenced production of their finished goods as on 31.03.2017. The Appellant has installed machinery for manufacturing MS Bolt prior to 31.03.2017 and intimated the Department also. In fact, they have started procuring the machineries from 2016 itself. They have submitted invoices for the procurement of their main raw materials and the machineries required for manufacturing of their finished products namely MS Nut and MS Bolt. The commencement of commercial production on 31.03.2017 was also intimated to the Range Office vide letter dated 31.03.2017. However, there was no verification appears to have been done by the Range Officer immediately on receipt of the letter to check the correctness of the claim made by the Appellant. The doubt was raised by the department for the first time on 22.12.2017 when the appellant was asked to explain why the date of Central Excise Registration and the date of commencement of commercial production were the same. The non availability of Invoices for the procurement of the raw material Hexagonal bar for the manufacture of M S Bolt alone cannot be a reason for denying the benefit of Notification No.20/2007.The Department could have verified the correctness of their claim of commencement of commercial production on 31/03/2007 by immediate verification when they gave the Intimation letter on 31/03/2007. Having not done the verification immediately after 31/03/2007, their claim of commencement of commercial production cannot be questioned later when they provided all documentary evidence to support their claim for commencement of commercial production on 31/03/2017 - the Department of Industries has given a certificate to the Appellant that they have commenced commercial production as on 31.03.2017 based on the documents submitted by them. The other documents submitted by the Appellant also indicate that they have commenced commercial production on 31.03.2017 and effected clearances of 500 kgs. each of MS Bolt and MS Nut on payment of duty and filed ER 1 returns for the respective periods. These evidences clearly establish that the Appellant has in fact commenced commercial production as on 31.03.2017. The allegations of the Department that all the partners of the erstwhile Satyam Alloys are partners of the new unit M/S Sriram Fastners and its functioning in the same premises where M/S Satyam Alloys was functioning earlier are not sufficient grounds to deny the benefit of the exemption Notification available to a new industrial unit. As per the Notification if the evidences available on record indicate that the new industrial unit has been established prior to 31.03.2017 and commenced commercial production prior to 31/03/2017, they will be eligible for the benefit of the Notification No.20/2007 - from the documents submitted by the Appellant, it is clearly established that the Appellant has established a new industrial unit and commenced production prior to 31.03.2017. The Appellant are eligible for the benefit of the Notification No.20/2007 dated 25.04.2007 - Appeal allowed.
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