9911796707
TMI Blog2016 (1) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... writing, printing paper, duplex and grey board. They have two units. Unit 1 was set up in 1999 for the manufacture of writing and printing paper and unit No.2 in 2000 to manufacture duplex and grey board. The respondent claimed exemption under Notification No. 6/2000-CE, 3/2001-CE and 6/2002 -CE. In respect of first clearance of 2500 MT, 3500 MTS of their products from these units. The Revenue felt that benefit of exemption notifications are not available to the respondents as the two units constitute a single factory only. Proceedings were initiated against the respondents and after due process, the original authority dropped the demands. Aggrieved by the said orders, the Revenue is in appeal. 3. In appeals, Revenue contended that that bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regarding the various factory infrastructure, they have stated that they have separate books of accounts and the commercial arrangement clearly shows that unit 1 and 2 do exists separately. Both the units have separate roll of employees, separately registered with ESI and provident fund. If any facility is not available in one of the unit, it is availed from the other unit on a purely commercial basis and on proper record. They also contended that wording of impugned notifications are now under consideration are materially different from the previous notifications No. 138/86-CE effective upto 28.2.84. Earlier the exemption is for clearance "by or on behalf of a manufacturer from one or more factory". The wording of present notification are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue cannot treat both the units as one factory for denying the concession. 6. Learned AR reiterated the grounds of appeal and held that material evidence of overlying parts and interconnectivity of these two units will establish that for the purpose of exemption, they should be considered as together. 7. Heard both the sides and examined the appeal records. 8. The point for decision is the eligibility of assessee for exemption in terms of above notification separately for unit 1 and 2. The exemption notification specifies that paper and paper board or articles made therefrom manufactured starting from the stage of pulp in the factory .. 9. The exemption claimed by the respondents were sought to be denied only on the ground that two u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different products. 11. After such detailed examination, the lower authorities concluded that the exemption of Central Excise duty on specific quantity of paper and paper board manufactured by unit 1 and 2 of the respondents during the impugned period was admissible for them separately. 12. After careful consideration of the finding of the original authority we find no reason to interfere with the same as all the points raised in appeal have been discussed and decided by the original authority. We fully agree with the finding of the adjudicating authority for the reasons stated above. Accordingly, we dismiss the appeals filed by the Revenue. The Cross Objection filed by the respondents is also disposed of. (Operative part of the order pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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