Overall installed capacity test governs exemption under Notification No. 33/99-C.E.; section-wise increase is not required.

Notification No. 33/99-C.E. was construed as requiring an overall increase of 25% in the installed capacity of the factory, not a section-wise increase in each part of the unit. On that reading, denial of the exemption for failure to achieve 25% expansion in every separate section was unjustified. The Tribunal noted that an identical issue had already been decided in favour of the assessee, and the notification benefit was therefore correctly extended; the Revenue's objection failed.

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Issues: Whether the benefit of Notification No. 33/99-C.E. dated 08.07.1999 could be denied on the ground that the 25% increase in installed capacity was not achieved in each separate section of the factory, although the overall installed capacity had increased by more than 25%.

Analysis: The notification was construed as requiring an overall increase in the installed capacity of the factory. The decisive consideration was the total installed capacity of the manufacturing unit, not a section-wise or wing-wise increase. An identical issue had already been decided by the Tribunal in favour of the assessee, holding that the notification did not impose any condition that every individual section must be upgraded by 25%.

Conclusion: The benefit of the notification was rightly extended to the assessee, and the Revenue's objection based on section-wise capacity increase failed.

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