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2018 (12) TMI 1845 - CESTAT KOLKATAGrant of Erroneous Refund - benefit of N/N. 33/99-CE dated8/7/1999 - case of refund is that changes in working capacity would not lead to change in installed capacity of the factory and strongly argued that the installed capacity of the factory remained unchanged and hence the assessee was not eligible to the exemption for the purposes of Notification No. 32/99 dated-8/7/1999. - HELD THAT:- Once the actual expansion of installed capacity is established, it cannot be denied merely on the ground that the alteration /addition was done without obtaining the prior approval of Chief Inspector of factories. It is also observed that the Refund Sanctioning Authority had taken into account the Verification Report dated 28/09/2006 of the Range Supdt. and had himself conducted spot verification alongwith the Divisional staff. In the order dated 28/09/2006, the Refund Sanctioning Authority has recorded itemwise /sectionwise increase/addition /alteration. The eligibility order itself states that there was no increase in Rolling/Dryer Section of Power loom. There was increase in Withering Section by 14.95% due to installation of Nine Troughs and 18.3% in CTC Section due to modification of CTC machine by installing Kaizem machines replacing old Master machines and 171% increase in Fermenting Section owing to increase in Floor area by 4547 sq. Ft. The Department’s contention of production activity without obtaining the valid Industrial License has no merit - the substantial benefits can not be denied on extraneous grounds. There are no infirmity in the order impugned and the same is hereby sustained - appeal dismissed.
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