Installed capacity certificates suffice for small-scale cement units claiming concessional excise exemption under the notification.

For small-scale cement units claiming concessional excise under Notification No. 36/87-C.E. as amended by Notification No. 36/88-C.E., an installed capacity certificate issued by the competent State authority was sufficient where no formal licensed capacity was required. The notification linked eligibility to production of not less than 30% of the annual licensed capacity certified by the prescribed authority, but the competent authority could certify only installed capacity for such units. Administrative clarification from the Development Commissioner for Cement Industries and the Board supported acceptance of installed-capacity certificates for determining eligibility, so the exemption remained available and the Revenue's challenge failed.

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Issues: Whether, for claiming the benefit of Notification No. 36/87-C.E. as amended by Notification No. 36/88-C.E., a small-scale cement unit could satisfy the requirement of annual licensed capacity by producing a certificate of installed capacity issued by the competent State authority.

Analysis: The notification granted a concessional excise rate where production in a financial year was not less than 30% of the annual licensed capacity certified by the prescribed authority. The units were small-scale industrial units for which no formal licensed capacity was required to be certified. The competent State authority had certified only the installed capacity, and the Development Commissioner for Cement Industries had clarified that, in such cases, State authorities could certify only installed capacity. The Board's subsequent clarification also supported acceptance of installed-capacity certificates for small-scale units while determining eligibility under the notifications.

Conclusion: The installed capacity certificate was sufficient for the purpose of the notification, and the Revenue's challenge to the exemption failed.

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