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2018 (2) TMI 787 - AT - Central ExciseArea Based Exemption - Benefit of N/N. 50/03-CE dated 10.6.2003 - denial of duty exemption on the ground that unit No.III is just an addition to the existing Unit and it cannot be considered as an independent unit - circular No.939/29/2010-CX dated 22.12.2010 - Whether in the facts and circumstances of the case, the benefit of Notification No.50/03 dated 10.6.2003 can be denied to the unit No.III on the ground that the unit No.III was not an independent industrial unit but an addition of unit? Held that: - the appellant has started their production in different units in the same factory having different inputs for manufacturing of their final products and final products are different. All the units are independent as they are having their own factory building, and the plant and machinery, employees, bank accounts, etc. separately. Whether all the units located in the same factory can be treated a separate unit in terms of the N/N. 50/03-CE dated 10.6.2003? - Held that: - it is clear that the factory and unit are two different connotations and a factory can have three different industrial units. The Revenue has heavily relied on the CBEC circular No.939/29/2010-CX dated 20.10.2010. In that circular where the industrial unit manufacturer a new product by installing fresh plant, machinery or capital goods after the cut-off date, the said circular will apply. Admittedly, the appellant has started their production before the cut-off date, therefore the said circular has no relevance. The appellant has started three different units on the same plot of land and having separate plant and machinery, separate, inputs, manpower, finances and are manufacturing different products, therefore, all the three units cannot be considered as one unit. In fact in the factory, there are three different units, therefore the Unit No.III is separate from Unit No.I is entitled for exemption under N/N. 50/03-CE. Appeal allowed - decided in favor of appellant.
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