GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 293 - CESTAT NEW DELHI

2016 (1) TMI 293 - CESTAT NEW DELHI - 2016 (340) E.L.T. 269 (Tri. - Del.) - Area based Exemption under Notification No. 50/2003-CE - commencement of commercial production on or before 31.3.2010 - Whether or not the respondent had commenced commercial production on or before 31.3.2010, in order to be eligible for exemption under notification No. 50/03-CE - Held that:- Concession under notification No. 50/03-CE is in pursuance of industrial policy notified through office memo No. 1(10)/2001-NER da .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e respondents were also given the benefit under Income Tax Act and Sales Tax Act on the ground that they commenced production before 31.3.2010. AH these issues are apparently operational under the same Industrial Policy. - It is apparent if the clearances made from 1.4.2010 are to be charged to duty as they are manufactured by the respondent, the commercial production would have certainly commenced prior to that date. Regarding non-availability of certain raw material with the respondent the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Appellant : Shri S Nunthuk, Jt. CDR For the Respondent : Shri Naveen Mullick, Adv ORDER Per B. Ravichandran The Revenue is in appeal against the order dated 30.4.2013 of the Commissioner. The respondents are engaged in the manufacture of lead acid batteries liable to Central Excise duty. The dispute arose regarding their liability to the exemption under Notification No. 50/2003-CE dated 10.6.03 on the ground that they did not commence commercial production on or before 31.3.2010. Proceeding .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed commercial production on or before 31.3.2010. In view of the following points:- A) the respondents did not have connection for required power Supply. B) Purchase of raw material and first sale of final product appears to be manipulated. C) Full plant and machinery required have not been installed. The respondents did not have proper clearance from HP State Environment Protection and Pollution Control Board. D) The certificate of commencement of commercial production issued by Deputy Director .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rated the points in appeal and stated that concession claimed by the respondent under the aforementioned notification is not available to them as they have not commenced commercial production of batteries on or before 31.3.2010. 4. The counsel for the respondent submitted that the order-in-original has examined each one of the points relevant to the case and the original authority concluded that the concession under the said notification is rightly available to them. He explained the respondents .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e 31.3.2010. (ii) The Noticee had not installed the complete plant and machinery as on 31.3.2010 and none of the 25 plant and machinery declared in their project report was functional on the said date. (iii) In their visit to the Noticee unit on 31.3.2010, the Assistant Environmental Engineer, HPSCPB, Parwanoo and Junior Environment Engineer, HPSPCE Baddi found that they had not installed Plant and Machinery including required pollution control devices. (iv) The Noticee did not also have crucial .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the area based exemption and to evade Central Excise Duty." 5. Regarding non-availability of power supply before 31.3.2010, he contended that they already had the power connection of 48Kw from HPSEB and 62KVA DG set. Power supplies of these sources is sufficient to run the machines installed in the month of March, 2010. It is admitted fact that they did not have all the machines installed and were not fully operational during March, 2010. The power availability during the month of March, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed about 15 workers including Supervisor in March, 2010, though the Managers were appointed in September, 2009. To support this, they have attendance register, salary ledger, wages register till 31.3.2010, Range Superintendent vide his letter dated 5.3.2011 addressed to the Asstt. Commissioner, Shimla specifically stated that respondent commenced the commercial production by 31.3.2010 and recommended for concession under the above notification. Learned Counsel submitted hat plant and machinery a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ary of the Board over-ruled the objection dated 31.3.2010 raised by the officers and extended the approval and the issue of certificate by the Pollution Control Board. He also relied on the fact that respondents were availing concession for sales tax and income tax based on same condition of commencement of commercial production prior to 31.3.2010. Himachal Pradesh State Industrial Policy Rules essentially requires certificate of commencement of commercial production to be granted by the Directo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s whether or not the respondent had commenced commercial production on or before 31.3.2010, in order to be eligible for exemption under notification No. 50/03-CE. A perusal of the impugned order shows that the learned Commissioner has elaborately discussed all the points agitated before us. Concession under notification No. 50/03-CE is in pursuance of industrial policy notified through office memo No. 1(10)/2001-NER dated 7.1.2003. In pursuance of the said Central Government Policy, the State Go .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ales Tax Act on the ground that they commenced production before 31.3.2010. AH these issues are apparently operational under the same Industrial Policy. 8. We find that the Revenue emphasized in appeal that it is not possible to manufacture Lead Acid battery in short span of few days and to clear that before 31.3.2010 as claimed by the respondents. We find notification talks about "commencement of commercial production". It is clear that commercial sale of manufactured items on or befo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version