TaxTMI 
TaxTMI 
2023 (8) TMI 1230
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....ioner (Appeals) has rejected the appeal filed by the revenue against the order of the Original Authority dropping the show cause notice asking the respondent to show cause as to why:- (a) They should not be denied the benefit of exemption of payment of central Excise Duty under Notification No. 50/2003- CE dated 10.06.2003, as amended, as they failed to fulfill the mandatory condition of starting Commercial production on or before 31.03.2010. (b) Central Excise duty of Rs.20,311/- (including Education Cess & Higher Ed. Cess leviable on the goods manufactured and cleared by them during April, 2010 to December 2010, should not be demanded and recovered from them under Section 11A of the central Excise Act, 1944. (c)....
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....activities were noticed at the said premises. 2.5 Accordingly, it was alleged that respondent had not undertaken any production activities at the said premises before the stipulated date and hence the benefit of exemption under notification No.50/2020-CE dated 10.06.2023 would not be available to the respondent. Accordingly, vide letter dated 08.06.2010 respondents were asked to obtain Central Excise registration and paid the due duty along with interest. Respondent represented against letter dated 08.06.2010 by their letter dated 03.11.2010. However, without any evidence proving them they have commenced production on or before 31.03.2010. Revenue was, therefore, of the view that respondent started commercial production after 08.04.2010 ....
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....e is Rs. 50 lakhs. As per F.No.390/Misc/116/2017-JC dated 22 August, 2019 revenue authorities have been directed to not file appeals before the amount (50 lakhs) and all appeals that had been filed in past were to be withdrawn. 4.3 However, from the Order-in-Original and Order-in-Appeal we find that both the authorities have considered the evidence produced and concluded that commercial production was started prior to 31.03.2010. Relevant aspect from the order of Original Authority is reproduced below:- "I would like to quote relevant paras of Hon'ble Supreme Court Constitutional Bench judgement in the case of Commissioner of Central Excise, New Delhi v/s Hari Cand Shri Gopal and Ors. [2010 (260) ELT 0003]: "22. The....
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....3.2010 or not. In the show cause notice it has been alleged that the party has not manufactured any goods before 31.03.2010 but no factual or documentary evidence has been given in support of this presumption. I also find that the party has submitted many document showing purchase of capital goods and raw material before the cut off date for the start of commercial production and clearance of goods from their unit. I find that the unit has started their production before 31.03.2010 and have thus fulfilled the condition no. 2(a) of the said notification, therefore, the party is eligible for exemption under notification no.50/2003-CE dated 10.06.2003 for a period of ten year w.e.f. the date of start of their commercial production i.e....
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.... for the month of March 2010 copy of the Balance Sheet for 2009-2010 and copy of the Trade Tax return submitted to the Trade Tax Department for the month of March 2010 The respondents also produced the copy of the first invoice issued by them on 30.03 2010 which showed receipt of the goods by the buyer M/s Connectivity Systems (P) Ltd Plot No. 2 Sector-7 IIE Pantnagar on the same day. I find that the department has not put forth any cogent and corroborative evidence to show that the invoice No 01 dated 30-3-2010 issued by the respondents was not genuine but fake and the same was issued without any commercial production on or after 07.01.2003 but not later than 31.03.2010. I observe that based upon the documents submitted by the res....