2006 (7) TMI 377

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....from units falling within the specified areas/zones of North Eastern Region of India. The notification applied to all industrial units, who fulfils one of the two conditions : (i)      New industrial units have commenced their commercial production on or after the 24-12-1997; (ii)    Industrial units existing before the 24-12-1997 have undertaken substantial expansion by way of increase in installed capacity by not less than 25% on or after 24-12-1997. 3. The appellants were engaged in the manufacture of Jams, Jelly, Squash, Juice, Slice, Cubes and Pulps falling under sub Heading 2001.10 of the Central Excise Tariff Act, 1985. Besides these PP Food products, they also manufacture Vinegar....

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....d that they were an existing industrial unit, it was found that production capacity existed at 2 MT in a single shift of 8 hours for their cumulative produce before the expansion of production, which was enhanced to 5 MT for Jam and Jelly and 10 MT for Squash for similar working shift and while installing new machines for expansion, some of the old machinery were kept aside, was the plea made by the appellant. But this plea was not accepted on the grounds that the word 'substantial expansion' as used in clause 3 of the said Notification, which reads as follows : (i)      New industrial units have commenced their commercial production on or after the 24-12-1997; (ii)    Industrial units existing ....

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....t the installed capacity remained above from the original capacity achieved in August-September, 2000 on the basis of which they availed exemption of the notification. 6. We find that reading of the clause (3) of the Notification disentitling the present appellant for being considered as under Clause (3) (a) since new industrial units would not necessarily mean that the units should be ab initio NEW manufacturing after 24th December 1997 and existing unit PP products and Vinegar factory could now a NEW unit when entering manufacturing of 'Fragrance and Flavours' as in this case. Since this issue has not been addressed by the Ld. Commissioner, we would set aside his order and remit the matter back to the Commissioner to redetermine a....