TMI Blog2016 (2) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... ingle component only. We find that the appellants have also submitted a certificate dated 25/7/2015 issued by Chartered Engineers to the effect that the listed 52 items are parts of bonnet assembly for tractor and these are joined or welded altogether to complete the full assembly. Most of these parts are listed as sheet metal parts which are manufactured using hydraulic press. Considering the various evidences submitted by the appellant and the categorical report received from the District Industries Authorities of the State Government, we find that the appellants had executed substantial expansion of installed capacity of more than 25 per cent and' as such are eligible for the exemption claimed under notification no. 50/03 CE. - Decided i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2007 of the Joint Commissioner who confirmed the total demand of ₹ 35,70,512/-. The period involved is 11/2005 to 12/2006. On appeal, the Commissioner (appeals) vide stay order dated 10/10/2007 ordered for pre-deposit of the full amount confirmed by the original authority to hear the appeal. On default by the appellant, the Commissioner (Appeals) dismissed the appeal vide his order dated 13/11/2007. Appellants filed appeal no. E/208/2008 with the Tribunal. 4. Both the above mentioned appeals filed with the Tribunal by the appellant were dismissed vide final order no. 126-127/2008 EX dated 19/3/2008. The appellants filed CEA no. 3/08 with the Hon'ble High Court of Himachal Pradesh. The Hon'ble High Court vide their order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;ble High Court remanded the matter for the Tribunal to determine afresh their claim for exemption. v) The department's emphasis on sale of one of their hydraulic press, much later on 6/4/2006 for denying exemption is totally misconceived as even after the reduction of such capacity the installed capacity had an increase of 33 per cent as against the requirement of 25%. vi) The lower authorities' view that the replacement of machinery is not to be considered as expansion of capacity is again misconceived as the new machinery installed itself had a much higher capacity. vii) The view of the Revenue that the enhanced capacity is only in respect of one item not for other 51 items is factually incorrect. The bonnet Assembly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal records. The point for determination is the eligibility of the appellant for the exemption under notification no. 50/03CE based on the expansion of installed capacity by 25 per cent or more. The factual position of the increase in capacity was not contested fully by the Revenue. 9. The objections taken were relating to replacement of hydraulic press which should not be considered as expansion of installed capacity and also later disposal of one of the hydraulic press by the appellant. These have been countered by the appellant with factual evidence. We find that in order to expand the capacity substantially, replacing hydraulic press with another machinery is one of the methods in existing and operating industrial unit. It will not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of 52 parts and sheet metal for tractors. This communication makes it clear that the enhancement in installed capacity is for overall bonnet assembly and not for single component only. We find that the appellants have also submitted a certificate dated 25/7/2015 issued by Chartered Engineers to the effect that the listed 52 items are parts of bonnet assembly for tractor and these are joined or welded altogether to complete the full assembly. Most of these parts are listed as sheet metal parts which are manufactured using hydraulic press. Considering the various evidences submitted by the appellant and the categorical report received from the District Industries Authorities of the State Government, we find that the appellants had executed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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