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2015 (3) TMI 35 - AT - Central ExciseArea Bases Exemption - Notification No.50/03-CE - Assessee undertaken substantial expansion on or after 07.01.2003 by the way of increase in installed capacity of unit by not less than 25% - Held that:- As per the documents on record, the officers of inspection team of Directorate of Industries inspected the factory before they started expansion work and also inspected their factory after completion of expansion work in December, 2003. - It is not the contention of the Revenue that the letter regarding inspection mentioned in the Directorate of Industries letter dated 02.01.2004 is false. When this letter dated 02.01.2004 acknowledging more than 25% increase in the installed capacity of semi corrugated paper and corrugated boxes was preceded by the inspection of the unit on 26/12/2003, in our view, it is absurd to doubt the correctness of this letter of the Directorate of Industries. As regards the Department's allegation that enhancement of capacity is only in respect of semi craft papers and corrugated sheets and there is no enhancement of capacity in the manufacture of corrugated boxes, the same is not correct, as the directorate of Industries letter dated 02.01.2004 also mentions enhancement of installed capacity for the manufacture of corrugated boxes from the earlier 1200 MT Per annum 1800 M.T. Per annum. Just because no additional machinery for manufacture of corrugated boxes was installed, it cannot be presumed that there was ho enhancement in the manufacturing unit's capacity to manufacture corrugated boxes. Moreover the Tribunal has held that for achievement of 25% or more enhancement in installed capacity for the purpose of exemption under notification No.50/2003-CE, it is not necessary that the expansion should be in each and every section of the manufacturing plant. - Decided against Revenue.
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