Notification No. 36/87-C.E., dated 1-3-1987, as amended - Whether applicable to 'substantial expansion'/ 'modernisation' units - Clarification regarding - Central Excise - 14/89

Notification No. 36/87-C.E., dated 1-3-1987 , as amended - Whether applicable to 'substantial expansion'/ 'modernisation' units - Clarification regarding Circular No. 14/89 Dated 14-2-1989 [From F. No. 109/33/88-CX.3(Pt)] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Notification No. 36/87-C.E., dated 1-3-1987 , as amended - Whether applicable to 'substantial expansion'/ 'modernisation' units - Clarification regarding A doubt had been raised as to whether a cement factory's substantial expansion/ modernisation Units which have commenced production of cement on or after 1-4-1986 would be entitled to the benefits of Notification No. 36/87-C.E., dated 1-3-1987, as amended. 2. The matter has been examined. Notification No. 36/87-C.E., dated 1-3-1987 was a budget notification. Its benefit is limited only to new Units that have started production of cement on or after 1-4-1986. It does not cover substantial expansion or modernisation. That means if a totally independent unit has come into production on or after 1-4-1986, it can avail the benefit of this notification. 3. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 4. All pending assessments may be finalised on the above basis.