2015 (1) TMI 1085 - AT - Central Excise

Area based Exemption under Notification No. 56/2002-C.E. - certificates produced by the respondents do not mention the base employment figure and the Khasra Number on which the unit are located are not mentioned in the notification - Held that - Certificate issued by the Labour Officer Jammu read with the certificates issued by the General Manager DIC leave no doubt that the additional investment made by the respondent units has resulted the more than 25% increase in regular employment. The fact of additional investment made for installation of additional machinery is not disputed by the department. In view of this the condition of additional investment resulting in more than 25% increase in regular employment stands satisfied. - The exemption is applicable to the goods other than those mentioned in Annexure-I to the notification and which are mentioned in the units located in the industrial area Growth Centre etc. specified in Annexure-II. In the Annexure-II the location of the industrial area growth centre etc. notified is specified by ;(a) Tehsil and the Police Station/village in which it is located and (b) Khasra number of which the industrial area comprises. In this case both the respondent units are located in Gangyal Private Local Industrial Area falling under Gangyal Police Station of Tehsil Jammu. The Khasra number 740 to 778 are mentioned against this industrial area and thus the units whose khasra number are 770 and 770 Min are within this industrial area. The Assistant Commissioner has also got confirmed that Gangyal Private Land Industrial Area falls within the jurisdiction of Police Station Gangyal. In view of this denial of the benefit of exemption under Notification No. 56/2002-C.E. to the respondent units on the ground that the khasra numbers of their plots of land are not mentioned in the Annexure-II to the notification is incorrect. - Decided against Revenue.

Summary

Issues:
- Exemption under Notification No. 56/2002-C.E. for manufacturing of DPC wires, strips, and power distribution transformers
- Increase in regular employment by more than 25%
- Location of units in the Industrial area specified in the notification

Analysis:
1. Exemption under Notification No. 56/2002-C.E.: The respondents claimed exemption under this notification for manufacturing goods chargeable to Central Excise duty. The Asstt. Commissioner initially rejected their claim citing missing base employment figure and Khasra Number details. However, the Commissioner (Appeals) overturned this decision, stating that the certificates confirmed the required increase in regular employment and the units' location fell within the specified industrial area. The Tribunal upheld this decision based on the evidence presented.

2. Increase in regular employment: The Departmental Representative argued that the certificates were vague and did not mention the base employment figure. In response, the respondent's counsel provided detailed information showing a significant increase in regular employment due to additional investment in plant and machinery. The Tribunal found the evidence presented by the respondent satisfactory, confirming the required increase in regular employment by more than 25%.

3. Location of units in the Industrial area: The Department raised concerns about the Khasra Numbers not matching those specified in the notification. The respondent clarified that the units' location fell under the Gangyal Private Land Industrial Area, supported by the Assistant Commissioner's confirmation. The Tribunal noted that the units' Khasra Numbers were within the specified industrial area mentioned in the notification, leading to the denial of the benefit of exemption being deemed incorrect.

In conclusion, the Tribunal dismissed the Revenue's appeals, finding no fault in the impugned orders. The decision was based on the satisfactory evidence of increased regular employment, compliance with the industrial area location specified in the notification, and the overall fulfillment of the conditions for exemption under Notification No. 56/2002-C.E.