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Commissioner of Central Excise And Service Tax, Chandigarh Versus M/s Sunnoxx International

2016 (1) TMI 293 - CESTAT NEW DELHI

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 dated 7.1.2003. In pursuance of the said Central Government Policy, the State .....

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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 they have clarified that while most of the raw materials were procured by them .....

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llick, 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. Proceedings were initiated against the respondent by issue of show cause notices dated .....

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ints:- 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 of Industries, Department of Industries cannot be considered for extending t .....

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ent 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 defense for each of the 7 points summarized under the show cause notice. Th .....

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nery 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 raw material like Absorbent Glass Mat (AGM) required for the manufacture of .....

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ding 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, 2010 is sufficient for commencement of commercial production. Regarding pur .....

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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 available for working utilizing the available power plant commenced commercia .....

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cers 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 Directorate of Industries. Such certificate stating the date of commercial producti .....

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fore 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 Government also commenced Industrial Policy 2004 to extend concession and faci .....

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