TaxTMI 
TaxTMI 
Legal provisions when manufacturing capacity of the product is increased then mentioned in LOP
24 Mar 2010 
2 Replies 
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Capacity enhancement in Letter of Permission: excess production permitted but notify authorities and seek LOP modification.
Increase in installed manufacturing capacity beyond the limit stated in the Letter of Permission does not by itself bar an export oriented unit from producing or exporting more than the LOP figure, provided minimum performance metrics such as net foreign exchange earnings are met; however units should intimate capacity enhancement and, to secure duty free input claims and avoid Central Excise disputes, seek formal modification of the LOP or rely on delegated permission for capacity enhancement. (AI Summary)
Increase in installed manufacturing capacity beyond the limit stated in the Letter of Permission does not by itself bar an export oriented unit from producing or exporting more than the LOP figure, provided minimum performance metrics such as net foreign exchange earnings are met; however units should intimate capacity enhancement and, to secure duty free input claims and avoid Central Excise disputes, seek formal modification of the LOP or rely on delegated permission for capacity enhancement. (AI Summary)
Dear Sir , In our LOP mention 1 year manufactering capacity of the the 1 prouduct is 20000 sqm if our capacity is increased and we produce above 20000 sqm .if there is Any legal problems ???