TaxTMI 
TaxTMI 
TaxTMI 
2015 (11) TMI 1339
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....e I to the Notification No. 50/03-CE and that the unit is located in the area specified in Annexure II to the exemption notification. The appellant unit had commenced commercial production on 23/10/08. Though at that time they were eligible for Notification No. 50/03-CE and could have opted for the same, but appellant unit did not opt for this exemption and had opted for SSI exemption under Notification No. 8/03-CE. On 03/11/09, the appellant unit crossed the SSI exemption limit and was no longer eligible for the SSI exemption. Immediately thereafter, the appellant switched over exemption to Notification No. 50/03-CE and as such started availing of this full duty exemption Notification number. However at that time, they did not file the req....
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....RU dated 26/4/12 wherein it has been clarified that the sun set clause is applicable only for the purpose of determining eligibility for this notification and once a unit has fulfilled the criteria for availing the benefit of exemption, the same has to be allowed, that the sunset date of 31st March 2010 is for commencing commercial production by a new unit or by an existing unit from expanded capacity and there is no provision in the notification which stipulates that to avail of this exemption, the option must be exercised before the sun set date and that are eligible unit even after the 31/3/2010 can exercise the option for this exemption, that in view of this, the very basis on which the exemption is sought to be denied is totally wrong,....
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.... Notification No. 50/03-CE, and the unit is located in the area specified in Annexure II of this exemption notification and, as such, if the appellant had exercised the option for this notification they would have been eligible for the same. The appellant crossed the SSI exemption limit on 3/11/09 and immediately thereafter, they started availing of full duty exemption under 50/03-CE. However, there is no dispute that at that stage, the appellant did not file any declaration or submitted any intimation to the Department, and that they have started availing of this exemption without filing the declaration. The declaration as per the requirement of condition No. (i) and (ii) of the first para of the exemption notification was filed only on 28....
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....f the exemption shall exercise his option in writing before effecting first clearances and such option shall be effective from the date of its exercise. Although the units in question are admittedly eligible for exemption because they were either set up or undertook substantial expansion within the prescribed time limit, some field formations have denied them the benefit of exemption on the ground that they exercised the option after the sunset date and not at the time of commencement of commercial production. There is nothing in the language of the above provisions which lends support to this interpretation. The sunset clause is relevant only for the purposes of eligibility and the eligibility criteria that a unit has to fulfil for availin....
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....as been exercised. 4. I am directed to say that the above position may be brought to the notice of Commissioners under your charge so that pending disputes, if any may be decided accordingly after due verification of the eligibility of such units. Yours sincerely, (Vivek Johri) JS (TRU)" In view of the above Circular of the Board, we hold that the basis for denying the exemption on the ground that the declaration was filed after 31/3/10, is not correct. 7. Next point of dispute is as to whether the benefit of this notification would be available only w.e.f. 28/6/10 or would be available from 04/11/09. In this regard there is no dispute that the appellant had not filed the required declaration. There is also no evidence that they had ....