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2022 (9) TMI 265 - Central Excise
Area Based exemption - slump sale agreement - whether Balaji had commenced commercial production prior to 31.3.3010 at all which was the cut-off date for the benefit of the exemption notification? - N/N. 49/2003-CE dated June 10, 2003 - HELD THAT:- It is not disputed that the first invoice was issued to Balaji on 30.03.2010. The exemption notification was available to “new industrial units which commenced commercial production on or before 7th day of January, 2003 but not later than 31st day of March, 2010.” Therefore, the date of commencement of commercial production of the unit becomes relevant - Balaji had purchased machinery and raw material, rented the generator set for a short while and started setting up and conducted some trials. Meanwhile, it has received electricity connection on April 24, 2010 and started commercial production.
Balaji has not started the commercial production by March 31, 2010 and the condition of the Notification is “commencement of commercial production” and not “commencement of any production” - appeal is answered in favour of the Revenue and against the assessee.
Levy of penalty - HELD THAT:- Raghuveer Beti and C S Rao were the persons concerned who had abetted the wrong. Important documents in the form of ‘Slump sale agreement’ and the MOU between the two Units which enables the assessee to obtain and transfer the benefit of exemption Notification No. 49/2003 from Balaji to the assessee were in their knowledge. There is, therefore, no reason to interfere with the penalties imposed on them.