2021-VIL-678-TRI-CE

CENTRAL EXCISE High Court Cases

Central Excise - Respondent had an existing manufacturing unit at shed no. 14 which fulfilled all the eligibility conditions for exemption under Area-based exemption notification dated 25.08.2003 – one of the such condition was that the industrial unit should have commenced commercial production on or after 24.12.1997 but not later than 28.02.2001 - assessee acquired two more sheds in the same industrial estate post 28.02.2001 and claimed duty exemption in respect of entire manufacturing capacity i.e. from the pre-existing sheds as well as newly acquired sheds – Dept seeking to deny duty exemption on the ground that new sheds which came into existence after the cut-off date of 28.02.2001 do not form part of the pre-existing unit – HELD - there was inter linking of a manufacturing process between all sheds, the raw material was procured commonly, that the labour and work force were also commonly maintained. All sheds were under the controlled of the same management and the sheds were under common registration of the factory – the new sheds were also adjacent to and inter connected with the existing manufacturing unit - In view of such overwhelming evidence, Tribunal committed no error in coming to the conclusion that the addition of two sheds to the existing manufacturing unit was only in the nature of expansion of manufacturing capacity and cannot be seen as establishment of new industrial units coming into existence after 28.02.2001 - answered in favour of the assessee and Department appeal is dismissed

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