2019 (2) TMI 1230

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....pter 30 of the Central Excise Tariff Act. They were manufacturing goods on their own account wherein they were claiming benefit of SSI exemption Notification No. 8/2003 - CE dt. 01.03.2003 thus clearing goods under Nil rate as well as were manufacturing and clearing goods on behalf of "loan licensee" where the goods were cleared under brand name of loan licencee and were paying duty at tariff rate. They were issued show cause notice alleging that their unit is situated in rural area and hence the goods manufactured under brand name of others are eligible for SSI Exemption in terms of the notification. That for the year 2003 - 04 their aggregate value of clearances exceeded the SSI Turnover and hence they are liable to pay duty from the firs....

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....thority vide Order-in-appeal No. 286 to 287/2006 (Ahd-II/CE/Raju/Commr.(A) dt.30.08.2006 held that "it is seen that the SCN has only a bland statement alleging that the unit falls in rural area. There is no reason whatsoever. The rural area has a definition which reads as under: "Rural area means the area comprising in a village as defined in land revenue records, excluding i) The area under any Municipal Committee Municipal Corporation, town area committee, cantonment board or notified area committee, or ii) any area that may be notified as an urban area by the Central Government or a State Government From above it is seen that first requirement of definition of Rural area that it should fall under the category "the area comprising....

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....ged and it does not remains rural area. 5. On the other hand Shri T.S. Sikdar Ld. Assistant Commissioner (AR) reiterates the findings of the lower authorities and supports the impugned order. 6. Heard both the sides and perused the records. We find that the appellant's factory is located at GIDC (Gujarat Industrial Development Corporation) area. The Appellant has produced certificate issued by the GIDC which reads as under: As per the above certificate it is clear that the appellant has been allotted land by the GIDC on lease hold right basis for purpose of industrial activities. The GIDC has acquired the land by Land acquisition act provisions of industrial activities. It effectively means that the land has become an industrial land and....

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....ed below: From the reading of above reply, it is absolutely clear that the survey number of the land where the appellant's unit is located have been acquired for establishment of GIDC and the land falls under GIDC for which notification has been issued. As per the answer number 3 in the above letter dated 07.01.2019, even though the GIDC land parallely falls under concerned authority of village but it will no remain as rural area in terms of definition given in Notification No. 08/03-CE, which is reproduced below: "(H) "Rural area" means the area comprised in a village as defined in the land revenue records, excluding - (i) The area under any municipal committee, municipal Corporation, town area committee, cantonment board or otified a....