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2017 (10) TMI 1393 - AT - Central ExciseArea based exemption - N/N. 50/2003-CE dated 10.06.2003 - commencement of commercial production - production was started prior to 31.03.2010 and goods were sold to the buyers - Held that - Undoubtedly, the production was started on 23.03.2010 for manufacture of the polymer based soil stabilizer, Soiltech . Initially, the assessee-Respondents have used the small tank, as the production was less. Later, as soon as the demand increased, other bigger tanks were used for production. When it is so, the assessee-Respondents are entitled for the area based exemption as per N/N. 50/2003-CE dated 10.06.2003. Appeal dismissed - decided against Revenue.
Issues:
Department's appeal against Order-in-Appeal granting exemption under Notification No. 50/2003-CE dated 10.06.2003 for the manufacture of 'Soiltech' from July 2012 to March 2013. Analysis: The Department filed an appeal against the Order-in-Appeal issued by the Commissioner (Appeals) Customs, Central Excise & Service Tax, Meerut, granting exemption to the assessee-Respondents for the manufacture of 'Soiltech' under Notification No. 50/2003-CE dated 10.06.2003 for the period from July 2012 to March 2013. The dispute arose as the Department contended that the area-based exemption could not be granted due to the use of all machines in production, leading to a demand for duty. However, the Commissioner (Appeals) allowed the claim of the assessee-Respondents, noting that production had commenced before 31.03.2010 and goods were sold. The Appellate Tribunal, after hearing both parties and examining the records, found that production of 'Soiltech' began on 23.03.2010, initially using a small tank due to lower production levels. Subsequently, larger tanks were utilized as demand increased. The Tribunal concluded that the assessee-Respondents were eligible for the area-based exemption under Notification No. 50/2003-CE dated 10.06.2003. Therefore, the Tribunal upheld the impugned order, dismissing the Department's appeal and sustaining the exemption granted to the assessee-Respondents for the relevant period from July 2012 to March 2013.
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