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2022 (8) TMI 1098 - AT - Central ExciseArea Based Exemption - new products which were manufactured/added by the appellant after the cut-off date i.e. 31.03.2010 - benefit of N/N. 50/2003-CE dated 10.06.2003 - fulfilment of conditions of the Exemption Notification or not - HELD THAT:- It would be seen from the Circular dated 22.12.2010 regarding the scope of Notification dated 10.06.2003 that the provisions of the Notification dated 10.06.2003 do not place a bar or restriction on any addition/modification in the plant or machinery or on the production of new products by an eligible Unit after the cut-off date and during the exemption period of ten years. In all such cases, the benefit of the excise duty exemption under the Exemption Notification would continue to be available to an eligible industrial Unit, though, the period of exemption would remain to be ten years. In the present case, the appellant had set up new plant and machinery for manufacture of new products and, therefore, the appellant was eligible to avail the exemption for the residual period on the new products also. The appellant had not set up a new Unit and there was only a diversification of production capacity by adding new machines. The old products were continued to be manufactured, in addition to the new products. The fact that the investment for the new products was very large and the percentage of production of the new product was also very large cannot be made a ground to deny the benefit of the Exemption Notification dated 10.06.2003 to the appellant - In the present case, neither there was a charge in the show cause notice nor there is a finding in the impugned order that the old products and the new products had separate manpower or finances. It has, therefore, to be considered as a single Unit. Appeal allowed - decided in favor of appellant.
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