2014 (2) TMI 397

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....pter 38 of the Central Excise Tariff Act, 1985. They were availing duty exemption under Notification No.50/2003-CE dt. 10.06.2003 w.e.f. 09.01.2007. The respondent sent letter from Central Excise Division, Shimla on 11.01.2007, informing the Central Excise Authorities about their intention to avail of the exemption under Notification No. 50/2003-CE w.e.f. 09.01.2007 on the basis that they have expanded the installed capacity of their manufacturing unit by more than 25%. The letter was accompanied by a number of documents in support of their claim regarding capacity expansion and among the letter enclosed was letter dt. 06.01.2007 issued by General Manager, District Industries Centre, Una (U.P.) certifying that their capacity to manufacture ....

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....ry and equipment, Melting Tanks, Melting Furnace, Settling Tanks, Steam Boiler, Water Pipe Line for cooling, Electric Motors, and that for enhancing the installed capacity it is not necessary that the Copper Kettle capacity or the capacity of the discharge Kettle should also have been increased. Against this order of the Commissioner (Appeals), the Revenue have filed the present appeal and respondent has filed a Cross Objection. 2. Heard both the sides. 3. Sh. M.S. Negi, learned DR, assailed the impugned order by reiterating the grounds of appeal and pleaded that the capacity of the plant and machinery of the respondent depends upon the capacity of Copper Kettle in which distillation is done and the discharge Kettle in which the Rosin....

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....h and every unit of the plant to qualify for exemption by the way of 25% enhancement of capacity of production and that when as per the opinion obtained by Revenue from Chartered Engineer, annual capacity of production has been enhanced by more than 25%, the benefit of exemption cannot be denied. Besides this, he also cited the judgment of the Tribunal in case of Commissioner of Central Excise Vs. Hetikuli Tea Estate reported in 2008 (230) ELT- 497 (Tri. Kolkata) wherein the same view had been taken. He, therefore pleaded that there is no infirmity in the impugned order. 5. We have considered the submissions from both the sides and perused the records. It is not disputed that in terms of the letter dt. 06.01.2007 of General Manager, Dist....