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2016 (6) TMI 767 - AT - Central ExciseArea based exemption - denial of benefit of the exemption on the intermediate products namely water filter cartridges and EVA pipes. - Notification No.50/2003-CE dated 10.06.2003 - substantial expansion in the installed capacity - Held that:- It is admitted by the appellant that the substantial expansion in respect of the intermediate products have been undertaken only after the period of dispute. This brings us to the more fundamental question whether to increase the installed capacity of the unit, the capacity of each and every products manufactured in the unit needs to be increased. This aspect has been considered by this Tribunal over and over again. It has been held that only the overall increase in the installed capacity is to be taken into consideration while considering the expansion and there is no requirement that the expansion should take place in each and every section of the manufacturing unit. Validity of Show cause notices - Held that:- It appears that the demand has been crystalised as a result of the investigation ordered by the Commissioner whose reports dated 19.11.2007 and 13.02.2008, the Commissioner relies in the order. Inasmuch as copies of these reports have not been furnished to the appellant, the Commissioner has passed this order behind the back of the appellant clearly disregarding principles of natural justice. We also find that the basis of the demand does not emerge from the impugned order itself, making this error sufficient to set-aside the impugned order. Demand set aside - Decided in favor of assessee.
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