9911796707
TMI Blog1992 (8) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... are as follows : 3. The respondents having L4 Licence No. l/Cement/67 submitted a revised classification list effective 1-3-1987 claiming exemption under Notification No. 37/87-C.E., dated 1-3-1987 and the Assistant Collector held that they were not eligible to the exemption under this notification. The respondents thereafter preferred an appeal before the Collector (Appeals) who vide his appeal order dated 7-10-1988 set aside the Assistant Collector s order and remanded the case to the Assistant Collector for de novo adjudication with the observation that date of commencement of production of cement from the new unit would be taken as after 1-4-1986 and the Assistant Collector on physical verification should ascertain that new unit is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so far been given to the department. This fact was admitted by Sh. S.S. Aggarwal, Vice-President in his statement dated 22-6-1989 tendered under Section 14 of the Central Excises Salt Act, 1944 before the Superintendent (AE) Central Excises, Jaipur. (c) There is no Railway siding in the name of M/s. Chittor Cement Works. The railway siding is in the name of M/s. Birla Cement Works Ltd. and all the concerned payments are also made by M/s. Birla Cement Works." The Assistant Collector s order was once again challenged before the Collector (Appeals) who, by the impugned order, set aside the Assistant Collector s order and held that Chittor Cement Works is operationally and functionally independent of Birla Cement Works and as such eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stand that the existence of a conveyor belt showed that the new unit was not independent. The Ld. Sr. Counsel argued that the mere filing of appeal by the Deptt. in the Supreme Court against the Cegat order did not affect its validity unless it had been stayed or upset altogether. The Assistant Collector had visited the factory and had passed the order de novo after inspecting the unit. The Ld. Sr. Counsel urged that the existence of the common conveyor belt could not be a bar to the exemption as it has been shown that the conveyor belt was designed to carry crushed limestone from the new unit to the old and not vice versa, showing that the new unit was not dependent on the old. It had been installed only for emergency supply of crushed l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification which gave excise duty relief to cement manufactured in a factory which commenced production after 1-4-1986 on condition that such cement is manufactured out of clinker produced within the same factory and also that production in any financial year had not been less than 30% of the annual licenced capacity of the factory. The CEGAT earlier order had held in favour of the respondents by giving a finding that the respondents have to be considered as a factory which commenced production after 1-4-1986. The issue left open in CEGAT s earlier order was regarding whether the Chittor Cement Works was or was not a new factory as expressed by the CEGAT in paras 13 and 14 of its order as follows: The Revenue introduced evidence at a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued by the Central Board of Excise Customs, and also noting such exemption already extended by the Deptt. to another unit of M/s. Shree Digyijay Cement Co., held that denial of exemption in that case was illegal. The Delhi High Court decision straightaway answers the objection raised by the Assistant Collector that there was inter-dependence between the two units as Chittor Cement Works do not have a separate mine. The High Court observed, ......it is not necessary for the purpose of relief that the new unit should be in a green field exploiting the natural resources in the area. The department strongly asserts that the existonce of the conveyor belt connecting the two units shows inter-dependence in regard to supply of crushed lime st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he description of the licensed premises as M/s. Chittor Cement Works, P.O. Cement Factory, Chittorgarh. Separate agreement for supply of power to the new unit has been entered into with Rajasthan State Electricity Board and the annexures to this Agreement giving deails of connected load also shows that the unit has the machinery such as limestone crushers, cement mill, etc. Such and other evidence already noted in the two orders of Collector (Appeals) in this matter would show that the respondents have established their case for eligibility to exemption under Notification 36/87. As regards the other ground for denying the exemption that the Chittor Cement Works do not have a separate railway siding, the existence of separate railway siding ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
