9911796707
TMI Blog2023 (12) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... f Notification No.49-50/2003-CE dated 10.06.2003 and SSI Exemption No.08/2003 dated 01.03.2003 and also for the reason of unjust enrichment. On an appeal filed by the appellants, Commissioner (Appeals) has upheld the impugned order. 2. Shri Sudeep Singh Bhangoo, learned Counsel for the appellant submits that the appellants were engaged in manufacture of V.P. Rings even before 07.01.2003; it is not disputed that commercial production in the new separate independent unit commenced after 07.01.2003; Department disputes that this is not a new unit. He submits that the Notification does not define new industrial unit; however, Hon'ble Bombay High Court in the case of Devi Dayal Electronics and Wires Ltd and another - 1984 (16) ELT 30 (Bom.) and Hon'ble Apex Court in the case of Himalayan Co-op Milk Product Union Ltd. - 2000 (122) ELT 327 (SC) have held that new industrial unit must mean a separate, isolated part concerned with the industry or a complex; "industrial unit" must mean something other than factory; there can be more than one industrial unit in a factory. He further submits that Tribunal in the case of Tirupati LPG Industries Ltd. - 2015 (324) ELT 201 held that manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .50/2003 on the machinery manufactured by them in the unit set up by them on or after 07.01.2003 as per the notification and as no certificate has been given by the Competent Authority in the Government of Himachal Pradesh. The appellants argue that the new unit started by them has no connection with the existing manufacture and has to be treated as a new unit for the purpose of the notification; as the definition of "unit" is not given in the notification, recourse should be taken to the judicial pronouncements; the condition of grant of permission by the District Industries Centre or by any other authority of the State Government cannot be read into the notification. 7. We find that this issue has been considered by the Bench at New Delhi in the case of Tirupati LPG Industries Ltd. (supra); whereas the appellant in the impugned case was manufacturing V.P. Rings and has established a unit to manufacture/ fabricate machinery, in the case of Tirupati LPG Industries Ltd. (supra), they were manufacturing LPG Cylinders and have started a unit for manufacture of ACSR Conductors and claimed the exemption under Notification No.50/2003; the facts of both the cases are identical. We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll remain covered under this Industrial Area. For the purpose of this exemption notification, what is relevant is as to whether the manufacturing unit is located in the Industrial area/ estate mentioned in Annexure II and III and the khasra no. of the plot of land on which the unit is located is mentioned against that Industrial area. Just because the village in which the Industrial area falls was wrongly mentioned and the village name is corrected by amending notification, it does not mean that before the amendment, the unit was not located in the notified Industrial area and was not eligible for exemption. 8. Next question is as to whether the conductor unit is eligible for the exemption. The Conductor unit had been set up during Octo. 2002 to December, 2002 period and there is no dispute that during this period a total 3000 metres had been manufactured out of which only 300 metres were cleared on payment of duty. However, production during Jan. 2003 to March, 2003 increased to 46137 metres and during April, 2003 to June, 2003 the same increased to 4,42,100 metres. The appellant intimated to the Range Superintendent in their letter dated 7-11-2003 about commencing commercial p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;new' must be construed as not existing earlier. 8.4 Now, the new industrial unit cannot be the one commencing commercial production on or before after 10-6-2003, the date of issue of exemption notification - as, if this meaning is adopted, the condition of commencing commercial production on or after 7-1-2003 would become redundant. Therefore, the word „new' has to be construed with regard to the reference date "7-1- 2003". Since a new industrial unit which has commenced production on 7-1-2003, has to be set up i.e. erected and installed before 7-1-2003, this notification would also cover these unit, which had been set up before 7-1-2003, but commenced commercial production on or after 7-1-2003. Therefore, "new industrial unit" would include not only those units set up on or after 7-1-2003, but would also include those industrial units which have been set before 7-1-2003. But the „new industrial unit' set up either on or after 7-1-2003 or set up prior to 7-1-2003, must, for being eligible for the exemption satisfy the condition of having commenced their commercial production on or after 7-1-2003. This condition becomes important for the units set up before 7-1-2003, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
