TaxTMI 
TaxTMI 
TaxTMI 
2023 (8) TMI 1230
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....led 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) Penalty should not be imposed upon them under rule 25 of the ....
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....eged 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 and after scrutiny of the sales tax return submitted by the respondent for t....
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....ities 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been directed to not file appeals before the amount (50 lakhs) and all appeals that had been filed in past were to be withdrawn. 4.3 However, from the Order-in-Original and Order-in-Appeal we find that both the authorities have considered the evidence produced and concluded that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 law is well settled that a person who claims exemption or concession has to establish that he is entitl....
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.....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. 30.03.2010." 4.4 Commissioner (Appeals) has in the impugned order recorded as follows:- "I observe that the department h....
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....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 respondents, the adjudicating authority has rightly held that the mandatory requirement of the start of the production on or before 31.03.2010 in ter....