2018 (4) TMI 1795 - AT - Central Excise

Area Based Exemption - N/N. 50/2003-C.E. dated 10-6-2003 - relevant date of production in the factory - Department is of the view that on the cut off date i.e. 31-3-2010 there was no production in the factory - HELD THAT - It appears that the appellant has obtained the certificate from the Boiler Inspector in accordance with Section 7 of the Indian Boilers Act. As per the provisions of Section 9 of the said Act such certificate is to issue only when the boiler is ready to use. It is also seen that the appellant has filed the VAT return for the period 1-3-2010 to 31-3-2010 the same was acknowledged by the Assistant Commissioner Trade Tax Roorkee. The necessary tax and VAT was already paid and the challan for the period under consideration has been produced - In addition the appellant have produced the certificate issued by the General Manager District Industries Centre Roorkee where the initial date of commencement of production was mentioned as 30-3-2010. The production was commenced on or before 31-3-2010 and hence the assessee is entitled to the benefit of Notification No. 50/2003-C.E. dated 10-6-2003 - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against Order-in-Original denial of area-based exemption under Notification No. 50/2003-C.E. for manufacturing unit in Uttarakhand.

Analysis:
The case involved appeals against Order-in-Original No. 27/2015, 37-38/2016, dated 18-8-2015 & 26-8-2016 respectively, where the department also filed a cross-appeal against Order No. 27/2015. The appellant established a unit for manufacturing thermocol products claiming area-based exemption under Notification No. 50/2003-C.E. The department contended that as of the cut-off date, there was no production in the factory, thus denying the exemption. The appellant argued that commercial production had commenced before the cut-off date, supported by evidence such as a certificate from the Boiler Inspector and VAT returns for the relevant period.

Upon hearing both parties and examining the evidence, it was found that the appellant had obtained a certificate from the Boiler Inspector, filed VAT returns for the period in question, and had a certificate from the General Manager, District Industries Centre mentioning the commencement of production date as 30-3-2010. Considering this additional evidence, the Tribunal was inclined to believe that production had indeed commenced on or before 31-3-2010, making the assessee eligible for the benefit of Notification No. 50/2003-C.E.

Consequently, the impugned orders were set aside, and the appeals filed by the appellant were allowed. The cross-appeal filed by the department was dismissed, and miscellaneous applications were disposed of accordingly. The judgment was dictated and pronounced in open court by the President and Member of the Tribunal.