2010 (2) TMI 446

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....Advocate, for the Appellant. Shri S.K. Panda, Jt. CDR, for the Respondent. [Order per : Chittaranjan Satapathy, Member (T)]. - Heard both sides. The dispute in this case relates to interpretation of paragraph 2(b) of Notification No. 50/2003-C.E., dated 10th June, 2003. The said paragraph 2 reads as under : "2. The exemption contained in this notification shall apply only to the following....

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.... the old furnace by a new furnace would not amount to substantial expansion. 3. The Adjudicating Commissioner has placed reliance on Boards Circular No. 772/5/2004-CX, dated 21-1-2004 to deny the exemption. The learned Joint CDR appearing for the Department has also relied upon the following decisions of the Tribunal :- (1) National Newsprint & Paper Mills v. CC, Bombay 1987 (32) E.L.T. 153 ....

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....nied if the old furnace is replaced by a new furnace of higher capacity. In fact, installation of additional plant and machinery can be through installation of a new plant and machinery of higher capacity. In the present case, the appellants have increased their installed capacity from 4 MT to 5 MT by replacing the old furnace by a new furnace of a higher capacity with matching increase in auxilia....