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2002 (9) TMI 109 - SC - Central ExciseWhether the cement manufactured by the appellant is entitled to the benefit of the exemption notification, No. 23/1989-C.E., dated 1st March, 1989, issued by the Central Government under sub-section (1) of Section 5A of the Central Excises and Salt Act, 1944? Held that:- A reading of Notification No. 175/1986-C.E. shows that it relates to small scale industry, as is evident from paragraph (4) thereof. From the certificate issued by the Development Commissioner, it is evident that S.S.I. units are not required to take industrial licence, therefore, the question of certifying licenced capacity does not arise. So far as the production capacity of the S.S.I. unit is concerned, the certificate issued by the Director mentions that the production capacity of the appellant is 40 tonnes per day, which is far less than 200 metric tonnes per day. It is gainsaying that the licenced capacity will always be less than the production capacity. It has never been the case of the Revenue that the notification does not apply to cement manufactured by S.S.I. It cannot also be disputed that an S.S.I. unit, being exempt under the Industries (Development and Regulation) Act, 1951, is not required to have licenced production capacity. There being no controversy about the fulfilment of the other requirements of the notification by the appellant, we are of the view that Portland cement manufactured by the appellant is entitled to the benefit of the notification. The authorities are directed to extend the benefit of the exemption Notification No. 23/1989-C.E. to the cement manufactured by the appellant. In favour of assessee.
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