Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2010 (9) TMI AT This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2010 (9) TMI 564 - AT - Central Excise


Issues:
Challenge to denial of exemption under Notification No. 50/03-C.E. and SSI Exemption.

Analysis:
The appellant contested the denial of exemption under Notification No. 50/03-C.E. and SSI Exemption. The facts revealed that the appellant's unit was initially located at a specific address and availed area-based exemption under Notification No. 50/2003. Subsequently, the unit was shifted to a new location, leading to the denial of exemption for the period post-relocation. The appellant argued that since they shifted within the same area, they should still be eligible for the exemption. Additionally, they claimed entitlement to SSI exemption based on their total clearances falling within the prescribed limit. The appellant's consultant emphasized that even if the area-based exemption was not applicable, they should be granted SSI exemption. On the other hand, the Departmental Representative supported the impugned order and contended that the SSI exemption claim was an afterthought as it was not raised before the Adjudicating Authority.

Upon hearing both parties, the Tribunal acknowledged that the exemption under Notification No. 50/2003 was location-specific, and relocating the factory invalidated the entitlement to the said exemption. However, regarding the SSI exemption claim, the Tribunal disagreed with the Commissioner (Appeals) and opined that the matter required re-examination. The Tribunal noted that although the SSI exemption claim was not initially raised before the Adjudicating Authority, it was presented before the Commissioner (Appeals), who rejected it solely due to the failure to raise it earlier. Consequently, the Tribunal remanded the case to the Original Adjudicating Authority for thorough verification and examination of the appellant's eligibility for SSI exemption. The Tribunal directed the Authority to provide a fair opportunity to the appellants to present their case and make a decision based on the findings. Ultimately, the Tribunal disposed of the appeal with these directives, setting aside the denial of exemption under the SSI unit for further scrutiny and determination.

 

 

 

 

Quick Updates:Latest Updates