TMI Blog2014 (2) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... esult at which the capacity of production has increased about 65%, it would not be correct to deny the exemption on the ground that enhancement capacity of production is merely by processed improvement - Following decision in case of Uttaranchal Iron & Ispat Ltd.(2008 (5) TMI 91 - CESTAT NEW DELHI) and Hetikuli Tea Estate (2008 (5) TMI 177 - CESTAT KOLKATA) - Decided against Revenue. - Appeal No. E/1117/2009 - EX[DB] - FINAL ORDER NO:- 58619/2013 - Dated:- 21-11-2013 - Ms. Archana Wadhwa and Mr. Rakesh Kumar, JJ. For the Appellant : Sh. M.S. Negi, DR For the Respondent : Sh. S. K. Pahwa, Advocate JUDGEMENT Per Rakesh Kumar:- The facts leading to these appeal by the Revenue and Cross Objection by the Respondent, are, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am Boiler along with two Melting Furnaces which have been fabricated in the factory itself. However, according to the Range Staff, the capacity of the Copper Kettle in which the distillation is done and discharge Kettle in which the Rosin is discharge is 1000 Kgs. And 1500 Kgs. respectively. The Department was, therefore, was of the view that the capacity expansion is not by the way of additional plant and machinery but by process improvement only and accordingly respondent would not be eligible for exemption. The matter was adjudicated by the Additional Commissioner vide order-in-original dt. 02.12.2008 by which he denied the exemption. On appeal being filed to Commissioner (Appeals), the Commissioner (Appeals) vide order-in-appeal dt.11.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at since the capacity of the distillation Kettle and discharge Kattle has remained the same, there has been no increase in the installed capacity. He cited the judgment by the Tribunal in case of Bernelt Coleman Co. reported in 1997 (94) ELT- 661 wherein the Tribunal held that installation of imported goods result in modernization and renovation and thus increasing production capacity does not amount to substantial expansion. He, therefore, pleaded that the impugned order is not correct. 4. Sh. S.K. Pahwa, learned counsel for the respondent, defended the impugned order by reiterating the findings of Commissioner (Appeals) and cited the judgment of Tribunal in case of Uttaranchal Iron Ispat Ltd. Vs. Commissioner of Central Excise, repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g each capacity in which Rosin is put for melting, two Melting Furnaces for hearing the Rosin, two Settling Tanks for filtration and one Steam Boiler of 300 Kg per hr capacity for distillation of Rosin in the Kettle. Before expansion that the size were 800 kg and the heating of Rosie was done by using fuel wood, but after expansion/hearing is done by steam boiler in addition to fuel wood and the batch size has increased to 1000 Kg. The Installation of the above additional machinery is also confirmed by the Jurisdictional Range Officer. In view of this, just because the size of the Kattle in which the Rosin is heated and Discharge Kettle in which the Rosin is poured has remained the same, it cannot said that the additional capacity has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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