2009 (8) TMI 438 - AT - Central Excise

CESTAT overturns Commissioner, upholds appellant's tax exemption for rural factory location

GUJARAT ENGINEERING WORKS Versus COMMISSIONER OF C. EX., AHMEDABAD

GUJARAT ENGINEERING WORKS Versus COMMISSIONER OF C. EX., AHMEDABAD - 2010 (249) E.L.T. 86 (Tri. - Ahmd.) The Appellate Tribunal CESTAT, Ahmedabad, consisting of Ms. Archana Wadhwa and Shri B.S.V. Murthy, recently issued a judgement in the case involving an appellant engaged in the manufacture of automotive clutch products. The appellant was denied the benefit of a small scale exemption notification due to the use of their buyers' brand name, 'Luk'. The Original Adjudicating Authority granted the benefit to the appellant based on the rural location of their factory, which was supported by evidence from the village officer. However, the Revenue filed an appeal, arguing that the area was urban based on a notification upholding a notification from 1978. The Tribunal found that the notification was insufficient to establish the area as urban, as it referred to Odhav, not Nava Odhav. Additional evidence showed that Nava Odhav was considered rural until 2005, after which it became part of the Municipal Corporation of Ahmedabad. The Tribunal set aside the Commissioner's order and reinstated the decision in favor of the appellant.The judgement highlights the importance of considering all relevant evidence and the specific geographical area in question when determining eligibility for tax exemptions. It also emphasizes the need for thorough analysis and consideration of all available information before making a decision. The outcome of the case underscores the significance of understanding the specific circumstances and context of each case to ensure a fair and just resolution.