Central Excise - Notification No. 36/87-C.E., dated 1-3-1987, as amended and Notification No. 124/87-C.E., dated 29-4-1987, as amended - Whether applicable to 'substantial expansion' 'modernisation' units - Clarification regarding - Central Excise - 28/89

Central Excise - Notification No. 36/87-C.E., dated 1-3-1987, as amended and Notification No. 124/87-C.E., dated 29-4-1987, as amended - Whether applicable to 'substantial expansion' 'modernisation' units - Clarification regarding Circular No. 28/89 Dated 17-4-1989 [From F. No. 109/33/88-CX.3(Pt)] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Notification No. 36/87-C.E., dated 1-3-1987, as amended and Notification No. 124/87-C.E., dated 29-4-1987, as amended - Whether applicable to 'substantial expansion' 'modernisation' units - Clarification regarding . Reference to Board's F. No. 109/33/88-CX.3(Pt.), dated 14-2-1989 (Circular No. 14/89-CX.3) on the subject mentioned above and to say that a doubt had been subsequently raised as to whether the benefits of notification No. 36/87-C.E., dated 1-3-1987, as amended, and Notification No. 124/87-C.E., dated 29-4-1987, as amended, could be extended or not to a factory set up during the periods as mentioned in the Notifications in question as a result of substantial expansion and which is completely independent of the existing factory. 2. The matter has been further examined in the Board. The Board took note of the language used in the said Notification along with the definition of 'substantial expansion' as given in Section 13 of the Industrial Development Regulation Act, 1951 and observed that the said Notifications provided concessional rates of duty to cement manufactured in a factory set up during the periods as envisaged in the said notifications. The Board accordingly felt that the benefits of the said Notifications could be extended to any factory, set up as a substantial expansion or otherwise, as the case may be, provided the same is independent of the existing factory in all respects. If the substantial expansion is merely an expansion or modernisation of the already existing factory, then the benefits of the said Notifications would not be available in view of the fact that no new factory has come into existence. 3. The Board desires that the above guidelines be applied in deciding individual cases for extending benefits of the said Notifications. 4. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis.