Central Excise - Notification No. 36/87-C.E., dated 1-3-1987, as amended and Notification No. 124/87-C.E., dated 29-4-1987, as amended - Whether applicable to 'substantial expansion' 'modernisation' units - Clarification regarding
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Concessional duty eligibility clarified: benefits apply to newly independent factories from substantial expansion but not to mere modernisation. Concessional duty under the notifications is available only where a new, independent factory is created; a unit resulting from substantial expansion qualifies if it is independent of the existing factory in all respects, whereas mere expansion or modernisation of an existing factory does not attract the notifications' benefits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Concessional duty eligibility clarified: benefits apply to newly independent factories from substantial expansion but not to mere modernisation.
Concessional duty under the notifications is available only where a new, independent factory is created; a unit resulting from substantial expansion qualifies if it is independent of the existing factory in all respects, whereas mere expansion or modernisation of an existing factory does not attract the notifications' benefits.
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