2004 (2) TMI 493 - AT - Central Excise

Summary

Issues involved: Interpretation of exemption Notification No. 32/99-CE regarding increase in installed capacity for units in North-East Area.

The Revenue appealed against the Commissioner of Central Excise (Appeals) decision granting exemption under Notification No. 32/99-CE to the respondents for increasing installed capacity by 25% in North-East Area. The dispute centered on the correctness of the claimed increase in installed capacity by the respondents.

The Revenue contended that conflicting information on installed capacity from the Chartered Engineer and the Directorate of Industries raised doubts on the reliability of the evidence provided by the respondents.

The Commissioner (Appeals) acknowledged the variance in certificates but accepted the explanation provided by the appellant, noting that the increase in capacity was indeed over 25%, as supported by the flow chart submitted. The Commissioner found no contradiction between the certificates and the appellant's submissions.

The respondent's advocate argued that both certificates confirmed an increase exceeding 25%, justifying the benefit of the Notification. The Tribunal referenced a previous case to emphasize that an overall increase of 25% in installed capacity sufficed for the Notification, without the need for individual section-wise increments.

After considering the arguments, the Tribunal upheld the Commissioner (Appeals) decision, stating that the increase in capacity, as indicated by either certificate, exceeded 25%. Consequently, the respondents were rightfully granted the benefit of the Notification, and the Revenue's appeal was dismissed.