2009 (8) TMI 1024 - AT - Central Excise

Tribunal overturns SSI exemption rejection, stresses reliance on official records for verification

The Tribunal set aside the rejection of the SSI exemption claim and penalties imposed, directing a reevaluation with additional evidence to determine the ... - Issues involved: Appeal against rejection of SSI exemption claim u/s 11A of Central Excise Act, 1944 and imposition of penalties.Summary:The appeals were filed against the rejection of SSI exemption claim by the Deputy Commissioner, Dehradun, leading to a demand of duty, interest, and penalties. The appellants argued that they had provided certificates proving their unit was in a rural area, but the authorities failed to consider them properly. The Department contended that the unit was in an industrial area, not rural, and the certificates were not sufficient evidence. The key issue was whether the unit qualified for SSI exemption under Notification No. 8/2002-C.E. based on its location in a rural area.The Tribunal analyzed the definition of 'rural area' under the notification, emphasizing the need for evidence from revenue records to establish the area's status. It noted that the Department did not initially dispute the unit's location, and the burden was on the appellants to prove rural status. The Tribunal found that the certificates provided were insufficient and remanded the matter for further evidence to determine the area's classification. The decision highlighted the importance of verifying the rural status based on concrete evidence before granting SSI exemption.In conclusion, the Tribunal set aside the previous order and directed the original authority to reevaluate the claim with additional evidence, emphasizing the reliance on official revenue records to determine the unit's location status. The case was remanded for a fresh decision, underscoring the need for proper evidence to support claims for SSI exemption under the notification.