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2017 (4) TMI 89 - AT - Central ExciseArea based exemption - N/N. 32/99 dated 08.07.1999 - Revenue's case is that the appellant has wrongfully availed the benefit of the refund of the Central Excise duty under the said notification to the tune of ₹ 79,45,526/- only, by willful suppression of the fact - demand of duty with penalty - Held that: - The spirit of the notification is to boost the growth of industries in the North East Region by way of expansion of the old units as well as to set up the new units. The intention of the legislation is very clear that the new unit should not be set up at the expenditure of old units. Needless to mention that the purpose of the area based exemption in the North East is to invest finance in the New Industrial Unit. That is why various tax exemption and facilities were provided to the investors for the period of 10 years - In the instant case, the total investment in the subsequent plant is of ₹ 34 lakhs as said above. Earlier parts and machineries were sold for ₹ 20 Lakhs. Thus the fresh investment is minimum for ₹ 14 lakhs only. So this is against the spirit of the notification. It is evident that appellant never started a new unit the appellant has used partly old machinery as stated above in the same premises/shed. Nature of the product is not meaningful to get the benefit of the notification. It is the investment in North East States to boost the economy - appeal dismissed - decided against appellant.
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