TaxTMI 
TaxTMI 
2015 (3) TMI 35
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....stt, Solan which is specified under Notification No.50/03-CE, They claimed exemption under Notification No.50/03-CE on the ground that they have undertaken substantial expansion on or after 07.01.2003 by the way of increase in installed capacity of unit by not less than 25%. They backed this claim by producing a letter dated 02.01.2004 issued by Directorate of Industries, Himachal Pradesh, Shimla acknowledging that the respondent had undertaken expansion of the production capacity of the semi craft paper and corrugated boxes after 07.01.2003 and had completed the expansion on 26.12.2003 and after completing the expansion, the installed capacity of semi craft paper was 9000 M.T. Per annum as against their earlier production capacity of 7200 ....
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....so creates doubt about the Respondents' claim of having achieved more than 25% increase in installed capacity, that the respondent have merely changed the old digester by a new digester of the same capacity without any addition of new plant and machinery, that whatever increase in capacity has been achieved is in respect of intermediate product and as such there is no increase in the installed capacity in respect of final products i.e. corrugated boxes, that in terms of Board's Circular No.772/5/2004 dated 02.01.2004 for extending the benefit of exemption Notification No.50/2003-CE to the Units who claim to have undertaken substantial expansion by the way of increase in installed capacity by not less than 25% on or after 07.01.2003,....
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....t, that the letter dated 02.01.2004 of the Directorate of Industries acknowledging the expansion of installed capacity of semi craft paper and corrugated boxes has been issued only after the inspection by the Directorate of Industries team, that the Department cannot doubt the correctness of the letter dated 02.01.2004 of the Directorate of Industries, that for the benefit of Notification No.50/2003-CE, it is not necessary that there should be expansion in each and every section of the plant, that the respondent had installed additional machinery and replaced with old digester with new digester so as to increase the installed capacity for manufacture of semi craft paper and corrugated sheets, and for manufacture of the corrugated boxes, the....
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....taken substantial expansion of capacity by more than 25%, and this cannot be treated as the case where capacity increase was achieved by merely improvement in the process. He therefore, pleated that there is no infirmity in the impugned order. 5. We have considered the submissions from both the sides and perused the records. The Notification No.50/2003-CE permits its benefit to the existing units which have undertaken substantial expansion by way of increase in their installed capacity by not less than 25% on or after 07.01.2003. In this case, there is no dispute that the appellant undertook the expansion work after 07.01.2003. According to the appellant, they had made an application to the Directorate of Industries for the necessary app....