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2010 (12) TMI 491 - HC - Central ExciseExemption - Increase in installed capacity - Substantial expansion - Additional investment in plant and machinery in modernization - In order to increase the capacity, respondent modified its existing furnace by increasing its length from 70 ft. to 120 ft. - The Board’s Circular dated 21st January, 2004 must be read as a whole -while using the word ‘additional plant and machinery’, it was not insisted that the existing plant and machinery should remain - The said clarification, which also uses the words “additional investment in plant and machinery in modernization”, read with the other part of the Circular, makes it abundantly clear that the additional plant and machinery, mentioned therein, is not in addition to the existing, but signifies something new brought-in in the manufacturing process, which in turn, increases the capacity - Tribunal concluded that by making modification of the already existing machinery, since the installed capacity has been increased by-more than 25%, respondent was entitled to the benefits.
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