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2016 (2) TMI 249 - AT - Central ExciseArea based exemption - notification No. 50/03-CE dated 10.6.2003 - denial of benefit as the appellant was not having electricity connection or DG set installed at the time of investigation - demanding duty along with interest and imposing penalty - Held that:- From the perusal of various documents, we find that appellants have installed machines which are evidence of manufacture of final products and they have license to manufacture from Drugs Controller. All the drugs manufactured also bears batch, year of manufacture. Admittedly, the appellant has cleared some drugs before when DG sets was there and drugs were manufactured before cut of date for availing exemption under the notification in question. The electricity connection was also released on 31.3.2010. This fact is verified from the electricity bill issued to the appellant dated 7.5.2010. Further, during the course of hearing, the appellant has produced a certificate issued by the Department of Industries certifying that commercial production started with effect from 30.3.2010. The supplier of DG set (on rental basis) has also gave the statement that he has given DG set on rental basis to the appellant. On the basis of this statement of supplier, the appellant has filed the affidavit and same has not been controverted by the adjudicating authority with cogent evidence. In the absence of any contrary evidence, the statement of supplier of DG sets (on rental basis) is having evidential value. Further, in this case the Range officer of Central Excise has inspected the factory premises of the appellant and held that appellant is entitled for benefit of exemption notification in question. In these circumstances, we hold that the appellant has rightly availed the exemption under Notification No. 49-50/2003 CE dated 10.6.2003. Demand of duty against the appellant is not sustainable - Decided in favour of assessee.
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