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2015 (1) TMI 539 - HC - Central ExciseArea based exemption - Constitutional validity of Circular dated 25th April, 2006 - Denial of benefits in the Notification No. 39/2001, dated 31-7-2001 - first commercial production for cast iron was done prior to 31-12-2005. However, the entire plant and machineries for production/ manufacturing of Pig Iron was not commissioned and installed (Fully) prior to 31-12-2005, and therefore, naturally the petitioners could not have commenced the production/manufacturing of Pig Iron. - Held that:- that so far as the exemption/benefits contained in the Notification No. 39/2001 are concerned, same shall not be available to the petitioner with respect to the production of Pig Iron, as admittedly, the plant/unit and machinery for production of Pig Iron were not commissioned/installed (Fully) prior to 31-12-2005. Under the circumstances, no error or illegality has been committed by the concerned respondents in denying the exemption/benefit of Scheme contained in the Notification No. 39/2001, with respect to the production of Pig Iron. So far as the non-granting of the exemption/benefits contained in the Notification No. 39/2001, on production/manufacturing of cast iron articles is concerned, it is not clear as to whether on production/manufacture of cast iron articles on the unit/plant and machineries fully installed and commissioned prior to 31-12-2005, the petitioners have been denied the said benefits or not - if, the unit/plant and machineries have been commissioned/installed (Fully) prior to 31-12-2005, the petitioner may be entitled to the benefits contained in the aforesaid Notification, on manufacture/production of cast iron articles for a period of five years from the date of commencement of the first commercial production of such goods on such unit. Under the circumstances, the concerned respondent are required to consider the case of the petitioner for grant of the benefit under the Notification No. 39/2001 with respect to the production/manufacture of cast iron articles. So far as challenge to the clarificatory Circular, dated 25-4-2006, issued by the Director (TRU), clarifying that, if, the commercial production of a particular kind of specified goods has not commenced prior to 31-12-2005, there again the benefit of such notification would not be available to the such goods, is concerned, so far as the claim of the petitioner with respect to the Pig Iron is concerned, as stated and observed herein above, said situation may not arise, as industrial Unit was not commissioned and the plant and machineries were not installed (Fully) prior to 31-12-2005. So far as the grant of benefits with respect to the same Scheme contained in the Notification No. 39/2001 on manufacturing/production of cast iron is concerned, as stated above, the matter is required to be considered by the appropriate authority - Following decision of M/s. Plastene India Ltd. [2015 (1) TMI 527 - GUJRAT HIGH COURT] - Matter remanded back - Decided partly in favour of assessee.
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