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TMI Blog2017 (6) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of exemption Notification No. 56/2002 ibid on the ground that the installed capacity has been increased more than 25%, therefore, they are entitled for benefit of exemption Notification No. 56/2002-CE dated 14.11.2002, as the respondent is located in the state of Jammu & Kashmir. The adjudicating authority granted the benefit of Notification No. 56/2002 ibid which were challenged by the revenue before the ld. Commissioner (A), who affirmed the impugned order of adjudicating authority. Aggrieved from the said order, the Revenue is in appeal before us. 3. The Ld. AR appearing on behalf of the Revenue submits that the installed capacity of the respondent have not been extended by more than 25%. Therefore, they are not entitled for ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition to the existing installed capacity and produced invoice to that effect, on the basis of this, which was held by the authorities below that the installed capacity of Printed Waxed Wrappers has been increased more than 25%. These facts are not in dispute. 7. Further, the sole ground taken by the Ld. AR that as Eddy Current Clutch Machine has been procured by the respondent in 2002 and the same is to be claimed installed in 2004, therefore, substantial expansion has not been achieved by the respondent is not admissible in the absence of any corroborative evidence to support the case of the Revenue is that the said machine was installed in 2002 prior to introduction of the Notification No.56/2002 ibid. 8. We find that the issue has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Project imports and its registration under Project Import (Registration of Contract) Regulation 1965. The findings of the Tribunal and construction of definition of Substantial Expansion has been based upon the wording of Tariff heading 84.66 that stated required for the initial setting up of a unit or the substantial expansion of an existing unit. The Tribunal has gauged the intention of legislature behine the wording, initially setting up of a unit as that a new unit should be set up. The substantial expansion means addition of a separate/additional line of production. This may be true for the requirement of the relevant tariff item and that particular case. The present appeal is in respect of the Notification No.56/2002-CE where, in my ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondents became capable of producing 6 colour design that would amount to expansion in the installed capacity as this product is new product and not being manufactured prior to the expansion. Similarly the enhancement in capacity of production of printed waxed wrapper from 1204 to 1410 MTs, Poly-Polyester laminates wrappers---127 to 255MTs and Poly-Polyester laminated pouches nil to 68MTs is an increase in the installed capacity, since, the appellants have not come up with any evidence to rebut the respondents claim. I do not find any reason for not accepting the claim of the respondents. Accordingly, I am of the view that the respondents have undertaken substantial expansion that resulted in the increase in installed capacity by more ..... X X X X Extracts X X X X X X X X Extracts X X X X
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