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2009 (8) TMI 1046 - CESTAT NEW DELHIArea Based Exemption - N/N. 49/2003-C.E., dated 10-6-03 and N/N. 50/2003-C.E., dated 10-6-03 - substantial expansion in installed capacity - Interpretation of notification - The commercial production, pursuant to the installation of machinery for enhanced production from the unit, commenced from 15th January 2003. On 10th June, 2003, the Notification No. 49/2003 was issued consequent to which, the respondents sought to claim the benefit thereunder by referring to clause 2(b) of the said notification. Held that:- There is no substance in the contentions sought to be canvassed on behalf of the respondents. Commissioner (Appeals) would have been justified in granting exemption benefit under Notification No. 49/2003 to the respondents in relation to the production if the same was as a result of the consequences of expansion in the production capacity pursuant to the expansion of the plant commenced on or after 7th January 2003. The exemption Notification No. 49/2003 would not apply to the industrial units existing on 7th January 2003 and which had already undertaken expansion programme prior to 7th day of January 2003. Undoubtedly, the facts in hand disclose that expansion programme of the respondents’ industrial unit and actual implementation thereof commenced much prior to 7th January 2003 and therefore, the respondents are not entitled to claim the benefit under notification in question and therefore, order of the original authority needs to be restored. Appeal allowed - decided in favor of appellant.
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