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2015 (10) TMI 1780 - AT - Central ExciseArea based exemption - condition of commencement of commercial production not later than 31-3-2010 - Benefit of Notification No. 50/2003-C.E., dated 10-6-2003 - Held that - a new cement unit can be said to have commenced commercial production (specially in the context of Notification No. 50/2003-C.E.) only and only when it commenced commercial production of cement because a cement unit is set-up for producing cement. The commercial production by the clinker plant by this new cement unit thus does not mean commercial production by the cement unit which is meant/required to commercially produce cement. Further commercial production of clinker by the clinker plant of this cement unit is not germane to the issue also because clinker figures in the negative list (Annexure-I referred to earlier) and therefore provisions of Notification No. 50/2003 do not even apply to the commercial production by clinker plant of new cement unit. In the case of CCE, Rajkot v. Meena Agency Pvt. Ltd. (2009 (8) TMI 979 - CESTAT AHMEDABAD) cited by the appellants, the assessee had already been availing of the exemption under Notification No. 50/2003-C.E. and had only added some new products. Similar situation existed in case of CCE, Rajkot v. Value Packaging (2008 (8) TMI 129 - CESTAT AHEMDABAD). The facts and circumstances in the case of CCE, Rajkot v. Indian Steel Corporation Ltd. (2008 (8) TMI 630 - CESTAT, AHMEDABAD) are also materially different from those obtaining in the case at hand. In that case the entire plant and machinery had been installed before the cut off date and plain corrugated sheets were also manufactured before the cut off date. - Thus none of these judgments come to the appellants aid. - Decided against assessee.
Issues:
Appeal against denial of benefit of Notification No. 50/2003-C.E. for cement production due to failure to commence commercial production by a specified date. Analysis: The appellants established a new cement plant but were denied the benefit of Notification No. 50/2003-C.E. for cement production as they did not commence commercial production by the stipulated date. The appellants argued that they began commercial production of clinker before the deadline and should be eligible for the exemption on cement production. However, the Tribunal noted that the notification required the new cement unit to start commercial production by a specific date, emphasizing that a cement unit must commence commercial production of cement to qualify. The Tribunal highlighted that the negative list in the notification excluded clinker from the exemption, clarifying that commercial production of clinker by the unit did not fulfill the requirement for cement production exemption. The Tribunal emphasized that the context of commercial production is crucial, stating that a cement unit must produce cement to be considered operational, not other unrelated items. The Tribunal distinguished previous judgments cited by the appellants, noting that those cases involved different factual scenarios and did not support the appellants' claim. In conclusion, the Tribunal found no merit in the appeal and dismissed it based on the analysis provided.
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