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2017 (10) TMI 7 - CESTAT NEW DELHIArea Based Exemption - substantial expansion of unit - N/N. 49/2003 dated 10.6.03 - whether the respondent assessee has increased the installed capacity of its plant and machinery by over 25% which is the requirement to be satisfied to be eligible for area based exemption under the category of substantial expansion? - Held that: - The increase in the installed capacity by more than 25% has been certified by the independent Chartered Engineer, Shri Rohit Oberai of M/s. Oberoi Associates, Kashipur. The same fact has also been endorsed by the Professor of Department of Paper Technology, Saharanpur as well as IIT Roorkee. The reports submitted by the technical experts reveal that such increase in installed capacity is the result of changes carried out by the respondent by way of replacement material / consumables and by installing machinery meant for improvement in quality of products. Similar issue decided in the case of COMMISSIONER OF CUS. & C. EX. Versus UTTARANCHAL IRON & ISPAT LTD. [2010 (12) TMI 491 - UTTARAKHAND HIGH COURT], where it was held that it is the factum of substantial expansion which is the determinative factor for grant of exemption. It is immaterial whether the substantial expansion is as a result of additional or new plant and machinery or by renovation /modification of existing plant and machinery. Appeal dismissed - decided against Revenue.
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