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2010 (5) TMI 258 - AT - Central ExciseArea based exemption – Substantial expansion of installed capacity. Though ‘substantial’ expansion by not less than 25%, is not defined in Notification No. 50/2005-C.E., it means some expansion or addition to plant and machinery, which is substantial and resulted in at least 25% increase in installed capacity. It cannot be mere improving of efficiency or making minor charges. However it is not necessary addition of machinery be comparable with setting of new unit, and replacement of machinery cannot be sufficient. Area based exemption- replacement of 4MT furnace with 6MT one, resulting in 50% increase in installed capacity. Held that- this was sufficient for claiming benefit of Notification No. 50/2003-C.E. Revenue plea that to claim it another furnace of 2MT was required to be installed, rejected.
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