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TMI Blog2023 (10) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared from industrial unit in the states of Uttarakhand and Himachal Pradesh for a period of ten years from the date of commencement of commercial production, subject to the condition prescribed under Clause 2(a). Clause 2(a) explicitly stated that exemption shall be granted to any new unit located at the specified areas or existing unit which had undergone substantial expansion in terms of the said notifications and commenced commercial production before the cut-off date, i.e., on or before 31.03.2010. As the Respondent's unit falls within the notified area and commenced manufacture before the cut-off date, thus, accordingly it filed requisite Application/Declaration dated 22.03.2010 alongwith supporting documents with the Assistant Commissioner of Central Excise Rampur division for claiming exemption from payment of duty. Pursuant to the filing of the application by the Respondent, the Department physically visited the factory premises under Panchnama dated 07.04.2010 and recommended vide verification report dated 10.04.2010 that the Respondent was not entitled to exemption Notification No.50/2003-CE due to non compliance of the condition prescribed under the said Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its commercial production on or before 31.03.2010. He further argued that the order passed by the learned Commissioner (Appeals) is not legal and proper and therefore the same is required to be set aside. 4. Learned Advocate appearing on behalf of the Respondent-assessee submitted that the facts and grounds in the present appeal filed by the Department is a repetition of the allegations contained in the show cause notice which were already considered in detail by the learned Commissioner (Appeals) while rejecting the appeal of the Department. It is his submission that both the first Appellate Authority as well as the Original Authority after discussing evidences produced before them arrived at the conclusion drawn while granting the exemption benefit to the Respondent-assessee. It is further submitted that the Respondent had placed all the supporting documentary evidences namely, purchase bills of plant and machinery with VAT Forms, NOC from Pollution Control Department, electric meter sealing certificate, electricity consumption bills from June, 2009 to July, 2010 with payment, receipts, purchase of raw materials during February, 2009 to August, 2009 with VAT Forms, VAT returns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi v/s Hari Cand Shri Gopal and Ors. [2010 (260) ELT 0003] held that:- "22. The law is well settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption concession or exception, as the cast may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the State and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirement of those conditions must be obeyed or fulfilled exactly, though at times some lot rule can be shown, if there is a failure to comply with some requirements which indirectory in nature the non-compliance of which would not affect the essence or substance of the notification granting exemption." The start of commercial production on or before 31.03.2010 was a mandatory condition of the exemption notification no.50/03-CE dated 10.06.2003 which the party has fulfilled without any doubt and, therefore, the benefit cannot be denied to them only because of their failure to show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase bills for the raw materials, photographs showing inspection by the officers of Industry Department on 29.06.2009, SSI registration, Sales Tax registration, VAT returns from July 2009 to March 2010, Account ledger of sales and purchase of the raw materials, copy of the first invoice dated 15.05.2009, first electricity bill, form 16 evidencing purchase of the raw material and the wages, payment register. All these documents submitted by the respondent substantiated their claim that they had started the commercial production in their unit much before 31.03.2010. I observe that on the basis of these documents submitted by the respondents, the adjudicating authority has rightly held that the mandatory requirement of the start of the production on or before 31.03.2010 in terms of the Notification No.50/03-CE dated 10.06.2003 has been fulfilled by the respondents and the benefit of the exemption cannot be denied only because the unit was found closed on the dates of the visit of the Central Excise officers placing reliance upon the decision of the Hon'ble Supreme Court (Constitutional Bench) in the case of in the case of Commissioner of Central Excise, New Delhi vs. Hari Chand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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