TaxTMI 
TaxTMI 
2017 (4) TMI 89
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....laneous Application is filed for additional ground and documents. 2. The brief facts of the case are that during the period in dispute the appellant was engaged in the manufacturing of food items namely Jams, Jellies and Squash falling under Chapter 20 and Vinegar under Chapter 22 of Central Excise Tariff Act, 1985. The appellant was enjoying the areas based exemption as per Notification No.32/99 dated 08.07.1999. It is alleged by the Department that the appellant has wrongfully availed the benefit of the refund of the Central Excise duty under the said notification to the tune of Rs. 79,45,526/- only, by willful suppression of the fact. So they demanded duty as well as levied penalty. Being aggrieved, the appellant has filed the appeal ....
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....the factory of M/s. ATC Ltd. to produce more material. But the said factory was removed in the year Aug/Sept, 2002 without informing to the Department. Thus, M/s. ATC has removed a sizeable portion of plant and machinery of Rs. 20 lakhs vide bill dated 30.09.2002 from their unit. 7. In the month of December, 2002, the appellants switchover to a new product namely synthetic food colour and fragrances which basically involves a process of admixing high value ingredients but continued in availing refund under above said notification in the name of 'PP Food Products'. It is alleged that the appellant falsely claimed the benefit of the notification in question and availed wrongful benefit. 8. During the course of arguments, Ld. Cou....
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....p in the same premises/shed with the support of Rs. 34.00 lakhs only where they had earlier manufactured P.P.Food. It is also on record that some of the plant machinery of P.P.Food unit were used for the manufacture of Fragrances and Flavours. The entire plant of manufacturing Fragrances & Flavours is not a separate unit which can be otherwise considered as separate or isolated part. It is also the submission of the Department that there is no dispute that the appellant had commenced their commercial production much before the cut off date of 24.12.1997 and therefore, the manufacturing unit of Fragrances & Flavours cannot be termed as a New Industrial Unit in strict terms of the clause. For the purpose, Ld. Counsel for the Department relied....
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....457 (SC)], it is observed that Industrial Unit is an expression well understood in the Excise Department, though the word of New Industrial Unit has not been defined in the Central Excise Act. From the record, it appears that the initial capacity of the plant was 2 MT (0.5 MT of P.P. Food plus 1.5 MT of vinegar) which was increased to 15 MT of P.P.Food and 5.0 MT of Vinegar with machineries from HLL. The duty on P.P.Food was abolished in March, 2001 and thereafter HLL removed their 7 MT worth capacity Plant & Machineries producing P.P.Food, which were brought by them during expansion. Now they were left with 8 MT of P.P.Food out of which 1.5 (approximately) MT of P.P. Food manufacturing machineries along with ancillary machineries worth Rs.....
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....ersal of CENVAT credit on the machineries which was sold in the month of September, 2002 which in fact they have reversed before the issuance of the Show cause notice. 12. After removal of machineries by the HLL, the capacity of the appellant 2.4 MT Jam & Jelly has come down from the original 2.5 MT which is not at the desired quantity of admissibility under the said notification. 13. The spirit of the notification is to boost the growth of industries in the North East Region by way of expansion of the old units as well as to set up the new units. The intention of the legislation is very clear that the new unit should not be set up at the expenditure of old units. Needless to mention that the purpose of the area based exemption in the....