2018 (4) TMI 1093 - AT - Central Excise

SSI Exemption - denial on the ground that the manufacture of goods taking place in unit, located in a notified area of HSIDC, Ambala Cantt - Held that - during the impugned period, the unit of the respondent was located in Village Rampur, Ambala Cantt. which was a Rural area - this is brought out by the certificates issued by Municipal Corporation, Naib Tehsildar and Village Sarpanch - benefit cannot be denied - appeal dismissed - decided against Revenue.

Summary

Issues:
Revenue appeal against dropping proceedings for SSI exemption under Notification No. 8/2003-CE.

Analysis:
The case involved a dispute over the eligibility of the respondents for SSI exemption under Notification No. 8/2003-CE dated 01.03.2003. The Revenue contended that the respondents, manufacturing Handles of Pressure Cooker under the brand name 'Prestige,' were not entitled to the exemption as they were producing branded goods in a notified area. The Revenue initiated proceedings to deny the SSI exemption, demand duty with interest, and take penal action. However, the Ld. Commissioner, in the impugned order, found that the unit was located in a rural area during the relevant period and granted the benefit of the SSI exemption. The Revenue appealed against this decision, and the respondents filed cross-objections.

The Revenue submitted that the factory's location was in an urban area of Ambala, as confirmed by the District Town Planner department of Haryana. They argued that the respondents were not entitled to the SSI exemption based on this information. In response, the respondent's counsel presented certificates from various authorities certifying that the factory was situated in a rural area before a specific date. The certificates from the Municipal Corporation, Village Sarpanch, and Naib Tehsildar supported the claim that the unit was in a rural area before the change in status.

After hearing both parties and reviewing the submissions, the Tribunal noted that there was no contradictory evidence presented by the Revenue against the certificates provided by the respondent. The certificates confirmed that the unit was located in a rural area before the specified date. Consequently, the Tribunal upheld the Ld. Commissioner's decision to grant the benefit of the SSI exemption under Notification No. 8/2003-CE dated 01.03.2003. The appeal filed by the Revenue was dismissed, and the cross-objections by the respondent were disposed of accordingly.

In conclusion, the Tribunal found no fault in the impugned order and upheld the decision to grant the SSI exemption to the respondents based on the location of their unit in a rural area before the specified date. The judgment highlighted the importance of supporting evidence, such as certificates from relevant authorities, in determining eligibility for tax exemptions based on geographical location.