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Issues:
1. Interpretation of legal provisions regarding substantial expansion of a unit for availing project import scheme benefit. 2. Determination of whether the installation of new machinery for producing a different product constitutes substantial expansion. 3. Assessment of whether the plant should be considered as a whole unit or separate units for the purpose of expansion. Analysis: 1. The case involved an application for waiver of pre-deposit of duty amounting to Rs. 3,91,77,115 demanded by the Commissioner. The dispute arose when the benefit of project import scheme was denied to the appellant due to the overall production capacity remaining the same despite an increase in capacity to produce a specific type of wire. The Tribunal remanded the matter for verification of the expansion in capacity to produce the specific wire type. 2. Upon re-adjudication, the Commissioner again denied the benefit, stating that the installation of new machinery for a different product did not constitute substantial expansion. The appellant argued that there had been a substantial expansion in the production of stranded wires, supported by changes in licensed capacities and machinery dedicated solely to stranded wire production. 3. The Ministry of Industries' endorsement indicated that the plant was considered a single unit, not separate units. The appellant contended that the plant had distinct units with different licensed capacities. The Tribunal found that the installation of new machinery without an increase in overall wire drawing capacity did not amount to substantial expansion, citing precedents where a mere increase in production did not qualify as expansion. 4. Ultimately, the Tribunal held that the appellant failed to establish a prima facie case for complete waiver of pre-deposit of duty. They directed the appellant to deposit a specified sum towards duty within a set timeframe, with the balance amount subject to waiver upon payment. The decision highlighted the distinction between substantial expansion of a unit and an increase in production, emphasizing the need for clear evidence of expansion to avail scheme benefits. This detailed analysis of the judgment addresses the issues raised in the case and provides a comprehensive overview of the Tribunal's decision regarding the interpretation of legal provisions and the determination of substantial expansion in the context of the project import scheme benefit.
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