https://www.taxtmi.com/caselaws?id=766945 CESTAT Chandigarh determined that appellant was ineligible for area-based exemption under N/N. 50/2003-CE. The tribunal found that the transferor unit was non-functional at the time of transfer, despite appellant's claims of a working unit takeover. Evidence showed irregular production records, nil clearances after takeover, and quarterly returns filed on single date before transfer. The tribunal concluded the transfer was a facade to avail exemption benefits, as CBEC circular permits transfer of working units only, not exemption alone. Demand for duty, interest, and penalties was upheld. Appeal disposed off. en-us Wed, 05 Mar 2025 00:00:00 +0530 Fri, 07 Mar 2025 08:41:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766945 CESTAT Chandigarh determined that appellant was ineligible for area-based exemption under N/N. 50/2003-CE. The tribunal found that the transferor unit was non-functional at the time of transfer, despite appellant's claims of a working unit takeover. Evidence showed irregular production records, nil clearances after takeover, and quarterly returns filed on single date before transfer. The tribunal concluded the transfer was a facade to avail exemption benefits, as CBEC circular permits transfer of working units only, not exemption alone. Demand for duty, interest, and penalties was upheld. Appeal disposed off. Case-Laws Central Excise Wed, 05 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766945