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TMI Blog2015 (12) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff. This unit is availing of the duty exemption under notification no. 49/03CE and had commenced commercial production sometimes in 2004. However, the dispute in the present case is not about this manufacturing unit but is about another manufacturing unit (unit II) claimed to have been set up by the appellant company in March, 2010 on the first floor of the same building and this unit is also for manufacture of the same products. According to the appellant company, the Unit II had commenced commercial production w.e.f. 29/03.2010 and the declaration for availing of exemption notification no. 49/03CE dated 10/06/2003 had been filed on 31/3/2010. According to the appellant, the single-window-clearance from the State Government for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew that the Unit-II has no independent existence and hence, the same would not be eligible for exemption notification no. 49/03CE. 1.3 After issue of show cause notice for denial of the exemption, the Jurisdictional Assistant Commissioner vide order-in-original dated 15/4/2011 held that the Unit-II of the appellant company is not eligible for area based exemption under notification no. 49/03CE. The Assistant Commissioner in this order upheld the allegation that the Unit-II does not has any independent entry/demarcation of identity in the same Khasara No. for which the declaration has been filed under the notification; that it is just not possible to install all the plant and machinery and start commercial production within short period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the date of officers visit, on account of floods, the raw material of Unit-I had been shifted to first floor, it cannot be presumed that there was common raw material storage of both the units and that in view of the above, the impugned order is not correct. 4. Shri R.K. Grover, ld. DR defended the impugned order by reiterating the findings of the Commissioner. 5. We have heard the submissions from both the sides and perused the records. 6. The appellant in the present case is Unit-II of M/s. Pam Cosmetics And Glasses Pvt. Ltd. and is located at first floor of the building at 196/2/1, Moginand Nahan Road, District Sirmour, Himachal Pradesh and the unit is engaged in manufacture of moulded plastic products. On the ground floor of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first floor are spiral stairs made up of iron and the raw material cannot be carried to first floor to these stairs, (v) both the units have common registration, (vi) there are two injection moulding machines put together on the first floor. One machine belongs to Unit-I and the other to Unit-II, (vii) stock of raw material was put together at one place, (viii) unit-II has applied for registration with DIC for manufacture of plastic goods and at the time of visit, the production of plastic goods (parts of the folding mirror) was going on both the machines. On enquiry from supervisors, it was reported that the goods under production at both machines are for Unit-I and (ix) the UnitiII is not independent and secure. In view of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the new machinery, if any installed, in the name of Unit-II on the first floor would be eligible for duty exemption under notification no. 49/03CE. However, since both the Units, - Unit-I as well as Unit-II, are upheld to be one entity and not the independent Units, they would be eligible for exemption under notification no. 49/03CE only for ten years from the date on which the Unit-I had commenced commercial production. In fact, in terms of the Para 3 of the notification no. 49/03CE and similar provision in notification no. 50/03CE, the exemption under these notifications is applicable to a Unit for a period not exceeding 10 years from the date of publication these notifications in the official Gazette or from the date of commencement of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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