Exemption for mini-cement plants depended on certificate verification, with remand ordered for hearing and fresh decision on capacity position.

Entitlement to Notification No. 23/89 for mini-cement plants turned on verification of the relevant capacity certificate and the effect of Government of India circulars requiring acceptance of annual capacity certificates. The record was unclear on the certificate for the relevant period, and the capacity position needed clarification from the concerned authorities. A missing personal hearing also raised a natural justice concern. In these circumstances, the denial of exemption could not be finally resolved on the existing material, and the matter was remanded for hearing and fresh decision in light of the circulars and clarified capacity position.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 23/89 dated 1-3-1989 on the basis of the certificates produced and the Government of India circulars, and whether the matter required remand for denial of hearing and for verification of the relevant capacity position.

Analysis: The assessee claimed the benefit available to mini-cement plants and relied upon earlier acceptance of certificates issued by the prescribed authority, together with the TRU circulars directing acceptance of annual capacity certificates. The record, however, showed an position as to the certificate produced for the relevant period, and the capacity position required clarification with reference to the concerned authorities. The absence of a personal hearing also raised a natural justice concern. In these circumstances, the correctness of the denial could not be decided finally on the existing record.

Conclusion: The denial of benefit was not finally sustained on the existing material, and the matter was remanded for personal hearing and fresh decision in accordance with the relevant circulars and the clarified capacity position.

Final Conclusion: The impugned order was set aside and the dispute was sent back for reconsideration on merits after hearing the assessee.

Ratio Decidendi: Where entitlement to an exemption depends on certificate-based verification and the record is unclear, the matter may be remanded for fresh decision after compliance with natural justice and consideration of the applicable administrative circulars.

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