https://www.taxtmi.com/caselaws?id=78329 Replacement of an existing furnace with a higher-capacity furnace, together with corresponding upgrades to auxiliary facilities, can amount to substantial expansion where the installed capacity increases by at least 25% after the relevant date. The Department's circular, read with the exemption notification, did not limit expansion to cases involving only additional plant and machinery; the decisive test was whether the unit had materially increased its installed capacity to the prescribed extent. On the facts, capacity rose from 4 MT to 5 MT per charge, supported by enhanced electric power sanction and related facilities, so the unit qualified for exemption under Notification No. 50/2003-C.E. en-us Mon, 15 Feb 2010 00:00:00 +0530 Sat, 13 Nov 2010 13:48:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=78329 Replacement of an existing furnace with a higher-capacity furnace, together with corresponding upgrades to auxiliary facilities, can amount to substantial expansion where the installed capacity increases by at least 25% after the relevant date. The Department's circular, read with the exemption notification, did not limit expansion to cases involving only additional plant and machinery; the decisive test was whether the unit had materially increased its installed capacity to the prescribed extent. On the facts, capacity rose from 4 MT to 5 MT per charge, supported by enhanced electric power sanction and related facilities, so the unit qualified for exemption under Notification No. 50/2003-C.E. Case-Laws Central Excise Mon, 15 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=78329