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TMI Blog2016 (5) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 50/2003-CE, submitted by the applicant that they commenced commercial production on 26.03.2010. Since it was a new unit, it could not have started production before 07.01.2003. Therefore, this sub-condition is also met by the applicant. It is noticed that the Circular No. 939/29/2010-CX dated 22.12.2010 has clarified that Notification No. 50/2003-CE does not place a bar or restriction on any addition / modification in the plant or machinery or on the production of new products after the cut-off date. In the instant case, applicant proposes to manufacture shoes of different brand and design by installing fresh plant/machinery. Further, the contention of Revenue that the applicant proposes to take separate factory license, ESI No. and PF Codes for expanded Haridwar Plant II, therefore, it will not fall under the category of existing unit, is not correct. Relevant Notification No. 50/2003-CE, as also CBEC Circular dated 22.12.2010 and 17.02.2012, do not envisage such condition. In view of said clarifications issued by CBEC, applicant can continue to avail the benefit of excise exemption. As far as second issue raised by Revenue regarding applicant starting a new unit i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pacity, though the excise return service tax return for the unit shall be filed in consolidated manner as substantial expansion is taking place in the same plot. 2. Applicant submits that Central Board of Excise Customs (CBEC) has clarified by its Circular No. 939/29/2010-CX dated 22.12.2010 that units which are already enjoying the duty exemption can produce new articles after the cutoff date using the same plant and machinery or by installing a new plant and machinery or capital goods and the provisions of Notification No. 50/2003-CE do not place a bar or restriction on an addition / modification in the plant and machinery or on the production of new products by eligible units after the cutoff date and during the exemption period of ten years as per the notification; that the benefit of excise duty exemption under the notifications would continue to be available to eligible industrial units. 3. Applicant submits that CBEC inter-alia has further clarified by its Circular No. 960/03/2012-CX dated 17. 02. 2012 that a unit availing exemption under the notification can even expand acquiring a plot of land adjacent to its existing premises by installing new plant / machinery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 31.03.2010, therefore said unit will not be eligible to enjoy the benefit of exemption Notification No. 50/2003-CE. 7. It is observed that the applicant submitted Intimation / Declaration dated 29.03.2010 to the Central Excise authority for setting up a new manufacturing unit in the State of Uttarakhand (earlier Uttaranchal) and availing benefit of exemption under Notification No. 50/2003-CE. The declaration shows location of unit as Khasra No. 72 and 74, Plot No. 11, Sec-11, 11E, Haridwar. Date of trial production is shown as 21.03.2010 and date of exercising option under Notification No. 50/2003-CE and date of commercial production are both shown as 26.03.2010. 8. Notification No. 50/2003-CE dated 10.06.2003 inter-alia exempts goods other than specified goods cleared from units located in areas mentioned in Annexure II and III to the Notification from whole of the duty of excise or additional duty of excise, subject to following 2 conditions (i) The manufacturer who intends to avail of the exemption under this notification shall exercise his option in writing before effecting the first clearance and such option shall be effective from the date of exercise of the optio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is noticed from the Intimation/ Declaration dated 29.03.2010 under Notification No. 50/2003-CE, submitted by the applicant that they commenced commercial production on 26.03.2010. Since it was a new unit, it could not have started production before 07.01.2003. Therefore, this sub-condition is also met by the applicant. 12. Applicant has relied on Circular No. 939/29/2010-CX dated 22.12.2010 issued by CBEC regarding scope of Notification No. 50/2003-CE. Relevant portion of the Circular is reproduced as under: Representations have been received from Trade and Industry Associations seeking clarification on the availability of the exemption benefit under these notifications in the following situations: (i) Where a unit starts producing some new products after the cut-off date using plant and machinery installed up to the said cut-off date and without any further addition to the plant and machinery. (ii) Where the installed capacity in a particular unit is upgraded after the cut-off date, so as to increase the efficiency of the machinery by installing ancillary machines or replacement of some parts etc but in such a way that it does not lead to increase in capacity of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Relevant extract of said Circular are reproduced, as under:- References have been received from field formations as well as from trade and industry seeking clarification regarding admissibility of benefit under area-based exemption Notifications No. 49/2003-CE and 50/2003-CE, both dated 10.06.2003, in the following situations: a. When there is a change in the ownership of a Unit already availing of the benefit of an area-based exemption Notification. b. When a Unit availing of the exemption physically shifts to a new location within the areas specified in the exemption Notification; and c. When a Unit availing of the exemption under an area-based Notification expands by acquiring a plot of land adjacent to its existing premises and installing new plant/machinery on such land. In the context of expansion of a Unit by acquiring an adjacent plot of land and installing new plant and machinery on such land, attention is invited to Board s Circular No. 939/29/2010-CX dated 22.12.2010 wherein it was inter-alia, clarified that any growth in the production/output of a unit by installing fresh plant and machinery would be eligible for exemption under these area-based N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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