Overall installed capacity test governs exemption, and section-wise increase is not required for refund eligibility.

Notification No. 33/99-CE was construed to require only an overall 25% increase in installed capacity for exemption and refund of central excise duty. The Tribunal noted that earlier decisions had already settled that the condition is not section-wise and does not require each wing or unit of the factory to show the same increase individually. Procedural objections based on alleged non-compliance with supporting documents were not accepted as a basis to deny the benefit where the facts were identical to those in prior cases. On that footing, the exemption and refund claim were restored in favour of the assessee.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 33/99-CE dated 08.07.1999 and refund of central excise duty on the basis of a 25% increase in overall installed capacity, and whether the benefit could be denied for non-compliance with alleged procedural requirements concerning individual sections and supporting documents.

Analysis: The appeal turned on the scope of the exemption notification. The Tribunal noted that the question was already settled in earlier decisions holding that the notification requires an overall increase of 25% in installed capacity and does not insist that every section or wing of the factory must individually show such increase. The Tribunal also accepted that where the facts and issue are identical to earlier cases, the Revenue cannot take a different stand. On that basis, the procedural objections relied upon to deny the refund were not accepted as a ground to unsettle the exemption already recognised on the facts.

Conclusion: The appellant was held entitled to the benefit of the notification and the refund claim could not be denied on the grounds taken in the impugned order.

Final Conclusion: The impugned order was set aside and the appeal was allowed, with the exemption and refund claim restored in favour of the appellant.

Ratio Decidendi: Where an exemption notification requires a 25% increase in installed capacity, the condition is satisfied by an increase in overall installed capacity and not by a section-wise increase in every unit of the factory.

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