2006 (11) TMI 377 - AT - Central Excise

Summary

Issues:
Denial of benefit under Notification No. 50/2003 to the appellant-manufacturer M/s. Uttranchal Steel Pvt. Ltd.

Analysis:
The appeals and stay applications stemmed from the denial of benefit under Notification No. 50/2003 to the appellant-manufacturer. The Tribunal decided to waive the requirement for pre-deposit and proceeded with the appeals after perusing the record and hearing both sides. The contention raised by the Senior Counsel for the appellants was that the denial of exemption was against the terms of the exemption notification and a judgment of the High Court. It was argued that the exemption notification covered units located in specific areas, including the one where the appellant's unit was situated.

The learned SDR contended that the notification did not encompass certain areas like the industrial growth center, which were to be established in the future. However, the Tribunal noted that the notification exempted goods cleared from units located in specified areas, including proposed industrial areas. The appellant's unit was located in an area listed in Annexure-II, making it eligible for the exemption. Additionally, the exemption notification clarified that both new and existing industrial units in designated areas were eligible for the exemption.

Furthermore, the Tribunal observed that the Director of Industries had included the area where the appellant's unit was situated for the purpose of the notification, making it clear that units located in specific khasra numbers were eligible for fiscal incentives. Based on these findings, the Tribunal set aside the impugned orders, allowing the appeals and stay applications with any consequential relief due to the appellants. The judgment was dictated and pronounced in open court by the Tribunal.