2018 (5) TMI 1350 - AT - Central Excise

Appellate Tribunal upholds benefit under Notification No. 56/2002-CE for bulk drug manufacturing

The Appellate Tribunal CESTAT CHANDIGARH upheld the lower authorities' decision to grant the benefit of Notification No. 56/2002-CE to a respondent ... Area Based Exemption - N/N. 56/2002- CE dated 14.11.2002 as amended by N/N. 11/2004-CE dated 29.01.2004 - Substantial expansion - increase of more than 25% employment in the factory - Held that: - on the basis of certificate issued by General Manager, District Industries Centre, Jammu, it is clearly mentioned that the respondent has increased more than 25% of regular employment which qualifies the condition of the Notification for availing exemption - appeal dismissed - decided against Revenue. Issues:- Appeal against the impugned order granting benefit of Notification No. 56/2002-CE.- Eligibility of the respondent for exemption based on increased regular employment.- Interpretation of the provisions of Notification 56/2002-CE regarding employment increase.- Validity of the certificate issued by the General Manager of the District Industries Centre.Analysis:The appeal before the Appellate Tribunal CESTAT CHANDIGARH concerned the grant of benefit under Notification No. 56/2002-CE to a respondent engaged in the manufacture of bulk drugs. The Revenue contended that the respondent did not meet the condition of increasing employment by at least 25%, as required by the Notification. The Assistant Commissioner and the Ld. Commissioner (A) had both allowed the benefit of the Notification based on the documents submitted by the respondent. The Tribunal examined the relevant provisions of the Notification, emphasizing Clause 2(b)(2) which required the production of a certificate confirming the increase in regular employment. The Tribunal noted that if there was an increase of more than 25% in regular employment, the assessee would be entitled to the benefit of the Notification.Upon reviewing the certificate issued by the General Manager of the District Industries Centre, Jammu, the Tribunal found that it clearly stated that the respondent had increased regular employment by more than 25%, meeting the condition for availing the exemption. Consequently, the Tribunal upheld the orders of the lower authorities granting the benefit of the Notification to the respondent. The Tribunal concluded that there was no infirmity in the impugned order and dismissed the appeal filed by the Revenue. The judgment highlighted the importance of meeting the employment increase criteria outlined in the Notification for eligibility for exemption benefits, and the significance of valid documentation to support such claims.In summary, the Tribunal's decision was based on a thorough analysis of the facts, the relevant provisions of the Notification, and the validity of the certificate provided by the General Manager. By confirming the increase in regular employment by the respondent, the Tribunal upheld the benefit of the Notification granted to the respondent by the lower authorities. The judgment serves as a reminder of the importance of complying with specific conditions and providing adequate documentation to support claims for exemptions under relevant notifications in excise matters.