TMI Blog2019 (2) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... y means that the land has become an industrial land and is a notified area for industrial activities - once the area is declared as industrial area it would also be deemed notified area under the Gujarat Municipality Act, 1963. This is a deeming fiction and does not take any other formality and the notified area is ipso facto governed by the provisions of Gujarat Municipalities Act, 1963. This also means that such area has come out of the purview of Gram panchayat that it does not remain the rural area. The survey number of the land where the appellant’s unit is located have been acquired for establishment of GIDC and the land falls under GIDC for which notification has been issued - even though place falls under village, but if it has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is engaged in manufacture of medicines falling under chapter 30 of the Central Excise Tariff Act. They were manufacturing goods on their own account wherein they were claiming benefit of SSI exemption Notification No. 8/2003 CE dt. 01.03.2003 thus clearing goods under Nil rate as well as were manufacturing and clearing goods on behalf of loan licensee where the goods were cleared under brand name of loan licencee and were paying duty at tariff rate. They were issued show cause notice alleging that their unit is situated in rural area and hence the goods manufactured under brand name of others are eligible for SSI Exemption in terms of the notification. That for the year 2003 04 their aggregate value of clearances exceeded the SSI Turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) while remanding case back to the adjudicating authority vide Order-in-appeal No. 286 to 287/2006 (Ahd-II/CE/Raju/Commr.(A) dt.30.08.2006 held that it is seen that the SCN has only a bland statement alleging that the unit falls in rural area. There is no reason whatsoever. The rural area has a definition which reads as under: Rural area means the area comprising in a village as defined in land revenue records, excluding i) The area under any Municipal Committee Municipal Corporation, town area committee, cantonment board or notified area committee, or ii) any area that may be notified as an urban area by the Central Government or a State Government From above it is seen that first requiremen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. That once the area has become notified area for industrial use, the status of land use is changed and it does not remains rural area. 5. On the other hand Shri T.S. Sikdar Ld. Assistant Commissioner (AR) reiterates the findings of the lower authorities and supports the impugned order. 6. Heard both the sides and perused the records. We find that the appellant s factory is located at GIDC (Gujarat Industrial Development Corporation) area. The Appellant has produced certificate issued by the GIDC which reads as under: As per the above certificate it is clear that the appellant has been allotted land by the GIDC on lease hold right basis for purpose of industrial activities. The GIDC has acquired the land by Land acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant submitted an reply to RTI query on the subject matter. The reply of RTI application given by GIDC is scanned below: From the reading of above reply, it is absolutely clear that the survey number of the land where the appellant s unit is located have been acquired for establishment of GIDC and the land falls under GIDC for which notification has been issued. As per the answer number 3 in the above letter dated 07.01.2019, even though the GIDC land parallely falls under concerned authority of village but it will no remain as rural area in terms of definition given in Notification No. 08/03-CE, which is reproduced below: (H) Rural area means the area comprised in a village as defined in the land revenue records, excluding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntrary to the certificate issued by GIDC and produced by the appellant. We thus find that the appellant is eligible for SSI Exemption only on goods manufactured on their own account and in case of goods manufactured under brand name of other persons on loan licnesee basis they are not eligible for the exemption on which they have correctly discharged duty. Hence the value of such clearances shall not be counted towards aggregate turnover for SSI Exemption eligibility. Our views are also based upon Apex Court judgment in case of CCE, Chennai Vs. Nebulae Health Care Ltd. 2015 (325) ELT 431 (SC). Resultantly we set aside the demands and penalties imposed upon them under the impugned orders. 9. The impugned orders are set aside and the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
