TMI Blog2015 (3) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... is false. When this letter dated 02.01.2004 acknowledging more than 25% increase in the installed capacity of semi corrugated paper and corrugated boxes was preceded by the inspection of the unit on 26/12/2003, in our view, it is absurd to doubt the correctness of this letter of the Directorate of Industries. As regards the Department's allegation that enhancement of capacity is only in respect of semi craft papers and corrugated sheets and there is no enhancement of capacity in the manufacture of corrugated boxes, the same is not correct, as the directorate of Industries letter dated 02.01.2004 also mentions enhancement of installed capacity for the manufacture of corrugated boxes from the earlier 1200 MT Per annum 1800 M.T. Per annum. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... semi craft paper and corrugated boxes after 07.01.2003 and had completed the expansion on 26.12.2003 and after completing the expansion, the installed capacity of semi craft paper was 9000 M.T. Per annum as against their earlier production capacity of 7200 MT per annum and that their production capacity of corrugated boxes became 1800 M.T. per annum as against their earlier production capacity of 1200 M.T. per-annum. The Jurisdictional Asstt. Commissioner vide Order-in-Original dated 23.11.2006 denied the exemption under this Notification on the grounds (a) the increase in production capacity has been achieved only in respect of intermediate product-corrugated sheets and there is no increase in the installed capacity of the final products - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular No.772/5/2004 dated 02.01.2004 for extending the benefit of exemption Notification No.50/2003-CE to the Units who claim to have undertaken substantial expansion by the way of increase in installed capacity by not less than 25% on or after 07.01.2003, the increase in the installed capacity should be by addition of plant and machinery and any increase in the installed capacity by means other than installation of additional plant and machinery would not qualify for the benefit of exemption under substantial expansion, that in this case whatever increase been claimed by the respondent, has been achieved by means other than installation of additional plant and machinery and hence the impugned order extending the benefit of this exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant, that the respondent had installed additional machinery and replaced with old digester with new digester so as to increase the installed capacity for manufacture of semi craft paper and corrugated sheets, and for manufacture of the corrugated boxes, the existing machinery was adequate, as the same machine could produce more corrugated boxes, and that the Tribunal in the cases of CCE, Shillong. vs. M/s. Dorria Tea Estate [2003 (156) ELT 999 (Tri.-Kolkata), CCE, Shillong vs. MKB (Asia) Pvt. Ltd. [2003 (158) ELT 616 (Tri.-Kolkata), CCE, Shillong vs. M/s. Hindustan Coca Cola Beverages [2004 (169) ELT 152 (Tri. Kolkata) and CCE, Dibrugarh vs. M/s. Hindustan Coca Cola Beverages (P) Ltd. [2005 (186) ELT 242 (Tri.- Kolkata) has held that for av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by not less than 25% on or after 07.01.2003. In this case, there is no dispute that the appellant undertook the expansion work after 07.01.2003. According to the appellant, they had made an application to the Directorate of Industries for the necessary approval for substantial expansion, and in that application they had furnished the details of the new machinery to be installed and the machinery (digester) to be re-placed. They have also placed on record the copies of these applications. As per the documents on record, the officers of inspection team of Directorate of Industries inspected the factory before they started expansion work and also inspected their factory after completion of expansion work in December, 2003. There is a letter d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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