Concessional duty for factory expansion depends on completion within the notified period, not the earlier date of the proposal.

A concessional duty notification for expansion of an existing sugar factory applied where the expanded capacity was completed within the notified period, even though the expansion proposal had been initiated earlier. The tribunal reasoned that the decisive requirement was completion of the expansion during the specified period, not the date of the initial application or proposal. Applying the same factual basis as an earlier tribunal decision, it held that the appellants satisfied the notification conditions and were entitled to the exemption, making the denial of concessional duty unsustainable.

---

---

Issues: Whether the appellants were entitled to the concessional rate of duty under the notifications for expansion of an existing sugar factory when the proposal for expansion was made before the prescribed period but the expansion was completed within the prescribed period.

Analysis: The notifications granted concessional clearance to factories that set up a new unit or increased the capacity of an existing factory pursuant to a letter of intent or industrial licence during the specified period. The record showed that the appellants' proposal for expansion had been registered before the relevant period and that the actual expansion was completed within the prescribed period. The earlier tribunal decision relied upon by the appellants was found applicable on the same factual basis, namely that the crucial requirement was completion of expansion within the notified period, not merely the date of the initial application.

Conclusion: The appellants were entitled to the benefit of the notifications and the denial of exemption was not sustainable.

Ratio Decidendi: Where a notification grants concession to an expanded industrial unit within a specified period, the benefit is available if the expansion is completed within that period, even if the proposal or application for expansion was initiated earlier.

---