TaxTMI 
TaxTMI 
2019 (4) TMI 161
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....okpur Road, Kala Amb, Tehsil Nahan, District Sirmour, Himachal Pradesh. Vide order dt.1.10.2008 passed by the Hon'ble Delhi High Court, the appellant merged with Neelkanth Ispat Udyog Pvt.Ltd. and Shree Ganpati Concast India Ltd. with effect from 9.12.2009. After merger, new entity was as J.B. Rolling Mills Limited., which continued to manufacture their products at the 3 respective units. The units were renamed in the records of District Centre (DIC) as under:- S. No. Name & Address of the Unit Khasra No. Name after Amalgamation 1 M/s. Shri Ganpati Concast (India) Ltd., Plot No.4, Phase-I, Industrial Ara, Johron, Kala Amb Plot No.4, Phase-I M/s. J.B. Rolling Mills Ltd.(Unit-I) 2 M/s.J.B.Rolling Mills Pvt. Ltd. Village -Johron, Trilokpur Road, Kala Amb, Tehsil Nahan, District Sirmour 11,13, 279/14,281/14, 282/15,283/15 M/s.J.B.Rolling Mills Ltd.(Unit-II) 3 Neelkanth Ispat Udyog Pvt.Ltd., Village Johron, Kala Amb 276/10, 284/15, 306/130/7 M/s.J.B.Rolling Mills Ltd.(Unit-III) 3. The appellant on 31.12.2009 intimated to the department that they are establishing a new unit i.e. Unit IV where the appellant has proposed to undertake manuf....
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....iteria, pertaining to the eligibility of a unit and eligibility of goods. In this case, there is no dispute regarding eligibility of the goods being cleared by the girder unit. The sole ground on which the benefit of exemption has been denied to the said unit is that the said unit does not independently qualify as an eligible unit for the purpose of notification and is part of already existing unit. A unit is independent and isolable from the other if it can function on its own without independently without depending on the other, it is an independent unit. To support his contention, he relied on the chartered engineer's report dt.12.2.2010 which certifies that girder unit is separate/independent/isolable unit from other rolling mill units and it can work independently if other units are closed down. During the course of investigation, the department did not make any efforts to examine whether girder unit can function independently without being dependent on the other rolling mills. Therefore, in the absence of any such study by the department, the report of chartered engineer is to be accepted and girder unit is to be treated separate independent unit eligible for exemption for a ....
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....the products already being manufactured by the Unit-II clearly show that the manufacturing of Girder was to be undertaken in the existing unit-II itself and not by any new unit as claimed by the Noticee. 4.9 It is contended by the Noticee that the Girder Unit was a new and separate unit. I also note that Sh.Sanjay Jain, Director, in his statement dated 18.08.2015 had inter-alia, stated that EMII issued by DIC was cancelled on 14.09.2010 by the authorities and also produced a letter dated 19.05.2014 from the SWCA in this regard. I find that on specific enquiry made by the department, the Commissioner of Industries, Udyog Bhawan, Shimla, vide letter Ind.Dev.F(34)Regn.(L&M)-693/2005 dated 14.09.2015, supra, intimated that EM-II issued in favour of the Noticee unit was never cancelled. Thus, the information stated by Sh. Sanjay Jain is not substantiated and proved to be incorrect. I further note that in the above said letter, it has also been intimated that there are only three units set up by Noticee. I find that as per names supplied by the Industries department, there is no unit in the name of and style of Girder Unit. It is further clarified in the said letter that "M/s.J.B. Rol....
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....mercial Estate or Scheme Area of Uttarakhand or State of Himachal Pradesh- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in the Schedule appended hereto, other than the goods specified in the Annexure appended hereto, and cleared from a unit located in the Industrial Growth Centre of Industrial Development Centre or Export Promotion Industrial Part or Industrial Estate or Industrial Area or Commercial Estate or Scheme Area as the case may be, specified in [Annexure-II and Annexure-III] appended hereto, from the whole of the duty of excise or additional duty of excise, as the case may be, leviable thereon under any of the said Acts: Provided that the exemption contained in this notification shall apply subject to the following conditions, na....
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....at although there is one factory which could have different unit of the different unit and to be treated as separate unit. Therefore, we hold that the girder unit is a separate and independent unit which is capable of manufacturing the MS girder of their own shall be treated new industrial unit which is eligible for exemption under Notification No.50/03-CE dt.10.6.2003 which started their production from 20.03.2010. Therefore, the same is eligible for benefit of exemption notification for clearance of their goods without payment of duty till 19.03.2020. 15. As we have concluded that the appellant is entitled area based exemption under Notification No.50/03-CE dt.10.6.2003 for their girder unit i.e. unit-II till 19.03.2020, therefore, the demand of duty is not sustainable. 16. In view of the above observation, we do not find any merit in the impugned order and the same is set aside and the appeal is allowed with consequential relief, if any. (dictated and pronounced in the court) ============= Document 1 To Subject: Dear Sir," No.Ind/SWCA/KA/COP/J.B.R/2005- Office of the Member Secretary, Single Window Clearance Agency, Kala Amb, District Sirmour (HP)....
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....ilokpur Road, Kala Amb M/s J.B. Rolling Mills Ltd., Trilokpur Road, Kala Amb, Nahan, Distt. Sirmour - Regarding. Please refer to DivisionOffice letter C. No. V(Decl.)/J.B.R/SML/139/14/8365 dated 09.09.2014 on the subject cited above. In this regard, it is submitted thatthe subject party M/s J.B. Rolling Mills Ltd., Trilokpur Road, Kala Amb, Nahan, Distt. Sirmour (HP) formerly known as Shri Ganpati Concast (1) Ltd., Kala Ambvide their letter dated 28.08.2014 received in the Divisional Office on 28.08.2014 have informed that they have been availing exemption from payment of duty under Notification No. 50/2003 dated 10.06.2003 on manufacturing & clearance of final product i.e. MS Bar, TMT Bar and Angie in their Unit-II situated at Trilokpur Road, Kala Amb since 30.08.2004. The said exemption has been expired on 29.08.2014, As per Para 1 of the said letter the party has also informed that they have closed the manufacturing operations in their said Unit-Il since 28.08.2014 and all the goods manufactured from the said unit has been cleared from the factory and the stock is NIL as on 29.08.2014. During the visit to the u....