9911796707
TMI Blog2023 (4) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... received on 28.11.2017 ) with the Central Excise Department for availing the benefit of Notification No.20/2007-CE dated 25.04.2007, claiming that it is a new Industrial unit which commenced commercial production on 31.03.2017. The Appellant has applied for Central Excise Registration on 30.03.2017 and it was issued by the Range Superintendent on 31.03.2017. 2. As the date of Central Excise registration and commencement of commercial production were the same, a verification was initiated by the Headquarters Anti-Evasion Unit of Shillong Commissionerate wherein it was found that the Appellant has used the same office building and some of the old leftover machinery of M/s. Satyam Alloys which existed in the same place earlier. The Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007 for a period of ten years w.e.f. 27.02.2006 to 26.02.2016. Since the exemption under the scheme are available to industrial units only for a period of ten years, the Appellant has deliberately got the registration of this new industrial unit in the name of M/s. Sriram Fastners in the same premises and shown that commercial production has started prior to 31.03.2017 to comply with the sunset clause i.e. 31.03.2017. Accordingly, the investigation concluded that the Appellant was not a new industrial unit as per the said Notification and not eligible for availing exemption under Notification No.20/2007 dated 25.04.2007 as amended. 3. Accordingly, a show cause notice dated 30.11.2018 was issued to the Appellant by the Assistant Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mating the commercial production. 5. The Appellant stated that as on 31.03.2017 they have manufactured 800 kgs. of MS Bolts and MS Nuts and cleared 500 kgs. each and paid duty of Rs.5,625/- through PLA. They contented that the return filed by them also substantiates this claim of clearance of 500 kgs. each of MS Bolt and MS nut during March 2007. Thus they claimed that they have fulfilled the requirements to avail the benefit of the Notification No.20/2007 dated 25.04.2007 available to new industrial units as they have commenced commercial production prior to the cutoff date of 31.03.2017. 6. The Authorized Representative for the Department submitted that the Appellant has not purchased all the inputs required for production of MS Bolts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the letter to check the correctness of the claim made by the Appellant. The doubt was raised by the department for the first time on 22.12.2017 when the appellant was asked to explain why the date of Central Excise Registration and the date of commencement of commercial production were the same. The subsequent investigation by the Headquarters Anti Evasion wing in 2018 only concluded that they have not commenced commercial production as on March 31st in 2017. On the basis of the investigation by the Anti Evasion wing, a show cause notice was issued to the Appellant only on 13/11/2018, proposing to deny the benefit of exemption Notification No.20/2007. We find that there was no objection raised by the Department when the ER-1 returns were fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.03.2017 based on the documents submitted by them. The other documents submitted by the Appellant also indicate that they have commenced commercial production on 31.03.2017 and effected clearances of 500 kgs. each of MS Bolt and MS Nut on payment of duty and filed ER 1 returns for the respective periods. These evidences clearly establish that the Appellant has in fact commenced commercial production as on 31.03.2017. 8. The allegations of the Department that all the partners of the erstwhile Satyam Alloys are partners of the new unit M/S Sriram Fastners and its functioning in the same premises where M/S Satyam Alloys was functioning earlier are not sufficient grounds to deny the benefit of the exemption Notification available to a new i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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