9911796707
TMI Blog2012 (1) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity by more than 25% of what was existing prior to the date from which exemption is claimed. 2. The Appellants are manufacturers of canned software. They also do the service of digitization of maps. For both these activities the main equipment needed are computers and its peripherals. The dispute involved in this case is whether the Appellants had undertaken substantial expansion of their capacity for manufacture of excisable goods viz. canned software. At the outset it is to be noted that the investment required for undertaking such substantial expansion is addition of a few computers along with accessories which involves very minimal expenditure. The Appellants had made a claim that they had made such investments and expanded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded their claims for the exemption. Thereafter the Excise authorities had made many visits to the units for inspection and audit of records and the officers never raised the issue that there was no substantial expansion. They also rely on the fact that the District Industries Centre of the State Government had issued a certificate showing that the Appellants had undertaken substantial expansion and that they were eligible for the exemption under Notification No. 50/2003-C.E. They have also produced evidences showing that the disputed CD writers were actually supplied by the supplier of computers free of cost because there was order worth Rs. 19,03,782/- placed on the supplier. They concede that there was no separate entries in their books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith reference to capacity for production of canned software only and the capacity to do digitization of maps and increase in such capacity is not relevant to decide the issue. 7. The AR points out that the case is made on the statements of Shri Vinod Bangalia Production-in-Charge of the noticee and Shri Vipul Bakshi, Assistant Project Manager. These officers of the company admitted that there was no investments made to increase the capacity for manufacture of canned software. The Revenue also relies upon the fact that financial records of inventory of equipment did not show any increase in CD writers which is a critical equipment for replication of software. He argues that the certificates issued by District Industries Centre are with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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