2016 (2) TMI 146

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....aft papers at their factory which is located at Kala-Amb of Himachal Pradesh and clearing the goods duty free by claiming exemption under notification no.50/2003-CE dated 10.06.2003. The unit was installed by the appellant way back in 1980 and thereafter, their production installed capacity determined was enhanced from time to time. The appellant on 24.10.2003 filed an application for enhancement of the installed capacity from 26000 MTs to 33,000 MTs. The appellant filed certain documents in support of their claim and after going through the correspondences between the appellant and the departmental authorities, it was found that before expansion, the installed capacity of the appellant was 26000 Mts and the appellant has wrongly mentioned ....

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....r application for increase in the installed capacity, the show cause notice was issued by the Asstt. Commissioner for denying the benefit of exemption notification, who ultimately denied the benefit of the exemption notification. The said order was challenged by the appellant before the ld. Commissioner who vide order dated 30.09.2001 after going through the various aspects allowed the benefit of the exemption notification no,50/2003 dated 10.06.2003 and the said order has been accepted by the Department. In that situation, the duty cannot be demanded from the appellant. Therefore, the impugned order is to be set aside. 4. On the other hand, ld. AR opposed the contention of the ld. Counsel and submits that letter from the Directorate of ....

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....sting installed capacity has been increased from 26400 MTs to 33000 MTs. To that effect, the Chartered Engineer has certified that vide certificate dated 21.10.2003, the Directorate of Industries vide letter dated 5.11.2003 also certified that existing capacity as on 6.1.2003 was 26400 MT and as on 5.11.2003 installed capacity after substantial expansion was 33,000 MT. The progress report filed by the appellant for the period June, 2003 with IFCI, shows 5400 MT/PA by way of expansion from 21000 MT to 26400 MT. We also find that audit report by the departmental officers clearly indicates that the licensed capacity and installed capacity of the appellant was 30,000 MT p.a. and 26400 MT. respectively. The letter dated 17.07.2001 issued by the ....