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TMI Blog2018 (9) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... the documentary evidences placed on record wherein the production process has been explained along with the procedural techniques involved which are placed in the paper book of the assessee, it is found that the evaporation and flaking are integral processes involved in the production of Caustic Soda which requires evaporation to increase its concentration by adopting Membrane Cell Technology. The adjudicating authority has only concentrated on the first limb of the Notification, namely, modernization by using Membrane Cell Technology and he has ignored the second limb, namely, capacity expansion while he accepts that there was only capacity expansion which is not sufficient to satisfy Notification 12/2012. Appeal dismissed - decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a consequence, the Deputy Commissioner vide Order in Original dt. 10.12.2013 concluded that the assessee was not eligible for availing concessional rate of BCD @ 5%, for the detailed reasons given in the said order. Aggrieved by the same, the appellant preferred an appeal before the Commissioner of Central Excise (Appeals-II), Chenna, who inter alia considering the Notification No. 12/2012 ( supra ), vide Order-in-Appeal No. 108/2015 dt. 01.06.2015 set aside the order of the adjudicating authority thereby allowing the benefit of concessional BCD @ 5% to the assessee. Aggrieved by the order of the Ld. Commissioner (Appeals), the Revenue is impugning the same by this appeal. 2. Heard Shri K. Veerabhadra Reddy Ld. Department Representa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it, v. That the present Bill of Entry by itself being not to modernize an existing unit which is a requirement of Notification 12/2012 ( supra ), therefore, the concessional rate of BCD is not available. vi. Even otherwise, amended Notification No. 86/1998 Cus. dt. 06.01.1998 made it clear that the concessional rate of BCD was applicable for import of mono or bipolar membrane electrolysers and parts thereof even for modernization of an existing Caustic Soda unit based on Membrane Cell Technology. vii. This amendment being specific that the imported goods should themselves help in modernizing an existing Caustic Soda unit by introducing Membrane Cell Technology and not modernize an existing Caustic Soda unit which is already opera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y efficient triple effect Evaporation Plant in the place of an evaporation plant by itself would not make it eligible for concessional rate of duty. 4.1 Per contra , the Ld. Advocate Shri S. Sankaravadivelu contended as under: i. The assessee was in the process of replacing existing monopolar electrolyser which was 28 years old, with latest bipolar electrolyser BiTAC which is energy efficient than the existing one. ii. The Caustic Soda lye produced in the membrane cell electrolyser is only 33% concentration while it is concentrated to 48% using Caustic Soda concentration unit which would further concentrate to 99.5% to produce Caustic Soda flakes, iii. The assessee was replacing existing double effect Caustic Soda evaporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord. The scope of Notification 12/2012 ( supra ) is not only for modernization by using Membrane Cell Technology of an existing Caustic Soda unit, it could also be for capacity expansion of an existing Caustic Soda unit. From the documentary evidences placed on record wherein the production process has been explained along with the procedural techniques involved which are placed in the paper book of the assessee, we understand that the evaporation and flaking are integral processes involved in the production of Caustic Soda which requires evaporation to increase its concentration by adopting Membrane Cell Technology. 5.2 The Ld. Commissioner is correct in his analysis that Notification 12/2012 (supra) contains three limbs namely: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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