9911796707
TMI Blog1993 (10) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... me and paid central excise duty leviable on levy of Sugar only. They have claimed concession in terms of Notification No. 130/83-C.E., dated 27-4-1983 as amended and 131/83, dated 27-4-1983 as amended. Show cause notice was issued to deny the benefit on the ground that they have not fulfilled the conditions laid down under Clause 3 of Explanatory Notes to both the Notifications 130/83 and 131/83 as amended inasmuch as the letter of intent or industrial licence was not issued to them between 1-10-1980 and 30-9-1985 by the Government of India, Ministry of Finance, under the Industries (Development and Regulation) Act, 1951 for setting up a new Sugar factory or for increasing capacity of a Sugar factory. Show cause notice was duly replied st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Chief Director, Directorate of Sugar, Department of Food, Government of India." Reading together the provisions of Clause 3 of Notification No. 130/83-C.E. as amended 131/83 as amended it is clear that a letter of intent is to be issued to the party between 1-10-1980 and 30-9-1985 and should be certified as new Sugar factory or expansion Project sugar factory by the Chief Director, Directorate of Sugar, Department of Food, Govt. of India. In this case the industrial licence certifying as new Sugar factory was issued on 14-3-1989 vide Certificate No. 7(4)/LAII/89 dated 14-3-1989 with an endorsement that industrial licence shall be deemed to have been amended. 3. Shri Sunder Rajan, learned Consultant for the appellants submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsion for setting up a new unit . He said since unit was already in existence and applied for expansion prior to amendment of explanation in the above notification by Notification No. 93/89, dated 1-3-1989, amendment is not applicable since amendment is prospective and not retrospective. 4. While reiterating the findings given in the impugned order, Shri M.K. Jain, learned SDR said that the unit was very much in existence even prior to 1980 and they had applied for industrial licence for substantial expansion in 1968 itself. It is evident from the letter dated 14-3-1989 issued by the Department of Industrial Development indicated above the substantial expansion occurring in earlier licence dated 4-1-1971 should be read as setting up a ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Since licence was renewed every year even after 1980 till 1983 and renewal amounts to fresh licence it cannot be said that nothing has taken place after 1-10-1980. Subsequently instead of putting up an expansion project Sugar factory they have gone for a totally new factory, and the same was put up in 1984. In fact representation to this effect was given in the year 1984 and on considering that representation only Ministry of Industry issued amended letter of licence for the manufacture of Sugar from substantial expansion for setting up a new unit and specifically stating that industrial licence shall be deemed to have been amended. Accordingly, certificate was also given by the Chief Director of Sugar that appellants are eligible to avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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