TMI Blog2010 (12) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... art of the Circular, makes it abundantly clear that the additional plant and machinery, mentioned therein, is not in addition to the existing, but signifies something new brought-in in the manufacturing process, which in turn, increases the capacity - Tribunal concluded that by making modification of the already existing machinery, since the installed capacity has been increased by-more than 25%, respondent was entitled to the benefits. - 9 of 2008 - - - Dated:- 22-12-2010 - Barin Ghosh, C.J. and V.K. Bist, J. REPRESENTED BY : Shri Shobhit Saharia, Advocate, for the Appellant. Shri P.R. Mullick, Advocate, for the Respondent. [Judgment per : Barin Ghosh, C.J. (Oral)]. The Excise Department issued a notice to the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... city by not less than 25% by way of additional installation of plant and machinery. (d) The term substantial expansion is not defined in terms of original or depreciated value of plant and machinery. The only criteria to be satisfied is accretion in installed capacity by at least 25% with additional plant and machinery. (e) Additional investment in plant and machinery in modernization or for improving the quality of existing products, unless it leads to increase in installed capacity by 25% or more, would not tantamount to substantial expansion. 2. Respondent filed his response to the show-cause, which having not been accepted, it was held that the respondent is not entitled to exemption in terms of the Notification dated 7th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced and, accordingly, additional plant and machinery were not used for increasing the installed capacity. We feel that the Board s Circular dated 21st January, 2004 must be read as a whole. A look at the Circular would make it clear that emphasis was given to factual increase of 25% capacity by installation of additional plant and machinery. Such additional plant and machinery may be secondhand, value whereof may be minimal, but some additional plant and machinery must be deployed for increasing the installed capacity. It did not say that the existing line of production, and the equipments used there for, should remain and a separate line of production consisting of new plant and machinery, having 25% capacity of the existing one, should be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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