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2015 (7) TMI 628 - AT - Central ExciseWaiver of pre deposit - Benefit of the area based exemption Notification No. 50/2003-C.E. - exemption for unit II which was in same compound as Unit I - Denial on the ground that Unit I is not availing exemption, therefore, unit II would not be eligible - Held that:- there are two units in a factory and both the units manufacturing Automobile parts but different parts. The appellant company, however, has obtained central excise registration in respect of the Unit I and the site plan enclosed with the registration certificate shows the location of the Unit I as well as Unit II. The appellant in respect of the Unit II have filed the required declaration for availing exemption Notification No. 50/2003-C.E. on 21-4-2008 and in respect of Unit II, they have also filed a declaration for exemption from obtaining registration and thus, while in respect of Unit II, there is no central excise registration, in respect of Unit II the department has issued a separate central excise registration. Thus, the department itself has treated the appellant’s factory as consisting of two units Unit I for which the central excise registration has been issued and Unit II for which the appellant have claimed exemption from obtaining registration. In respect of Unit I, the appellant has paid the duty and cleared the goods for export under rebate claim. In respect of Unit II, full duty exemption under Notification No. 50/2003-C.E. has been claimed. - the term ‘factory’ and ‘industrial unit’ have to be interpreted keeping in view the Central Excise Department’s practice to treat each section or part of a factory manufacturing different commodity as separate manufacturing units for purpose of L-4 licence and that each section or part of the factory is to be treated as separate industrial unit. Therefore, the word ‘industrial unit’ cannot be used in the sense of a factory as a factory may have more than one industrial units. The duty exemption under the exemption Notification No. 50/2003-C.E. is in respect of the goods cleared from an “industrial unit”. Thus it is very much possible for an assessee manufacturing different products located in the area specified under Notification No. 50/2003-C.E. to claim exemption in respect of the goods cleared from one industrial unit in the factory and opt to pay duty in respect of the goods cleared from another industrial unit in the same factory. - Stay granted.
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