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TMI Blog2019 (1) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the Revenue dated 14.01.2013 along with copy of clearance dated 4.01.2013. There is no adverse inspection report or finding to the facts as contended by the assessee, and as such, the denial of exemption is without any basis - appeal dismissed - decided against appellant. - Excise Appeal No.50398/2014 - A/53518/2018-EX[DB] - Dated:- 19-12-2018 - SHRI ANIL CHOUDHARY, MEMBER (JUDICIAL) And SHRI BIJAY KUMAR, MEMBER (TECHNICAL) Shri V.B. Jain, DR for the appellant Shri R.M. Saxena, Advocate for the respondent ORDER Per Anil Choudhary: The issue in this appeal is whether the exemption under Notification No.50/2003-CE was rightly denied to the respondent/assessee. 2. The brief facts are that the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Simultaneously, they are directed to take central excise registration and to pay central excise duty on the clearance effected by them. 3. The claim for continued exemption under Notification No.50/2003-CE was denied to the respondent/assessee by the following communication dated 21.05.2013 by the Asstt. Collector :- Please refer to this office letter even C.No.2132 dated 10.05.2013 on the above subject. The reply of the aforesaid letter has not been received so far in this office. In the above letter it has been alleged that no commercial production was made in your unit, the stock transfer made during the FY 2007-08 from Noida unit only was sold in the years 2010-2011 and 2011-2012. During the scrutiny of the records filed by yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as sale of ₹ 3,50,000/- at Rudrapur unit against the purchase of ₹ 1,50,000/-. There are also the expenses shown under the head of Diesel Wages. In view of these facts, it is evident that M/s.SMI had commenced the commercial production during the year 2007-2008 i.e. before the cut-off date of 31.03.2010. Regarding submission of unaudited balance sheet, I find that as per Section 44AB of Income Tax Act, 1961, the audited balance sheet is required to be filled in respect of the units having total sales, turnover or gross receipts, as the case may be, in business exceed Rs.Forty Lacs in any period. The total sales/turnover of the unit during 2007-2008 to 2010-2011 was well below Rs.Forty Lacs. Impugned letter has also mentioned t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted by M/s.SMI no objection was raised by the Department. 5.6. In the light of the above facts and legal provisions, I find that the grounds mentioned in the impugned letter dated 21.05.2013 denying exemption to the respondents are not sustainable. M/s.SMI correctly availed of the exemption provided under notification no.50/2003-CE dated 10.06.2003 and followed all requisite procedures. Change in ownership in September, 2012 was also duly intimated and the respondent (now owner) also observed the necessary procedures mandated by law. Since such change in ownership was permitted under Circular No.960/03/2012 dated 17.02.2012 which clearly held that change in ownership would not jeopardize the admissibility of exemption for the remaini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the period 18.06.2007 to 08.02.2010, there was no power connection in the unit. The power connection of 20 KW was sanctioned on 09.02.2010 by Uttranchal Power Corporation Ltd., SIDCUL vide his c.no.648 dated 09.02.2010. Besides during the period Feb., 2010 to July, 2012, no power was consumed. Uttranchal Power Corporation Ltd. had demanded ₹ 58,464/- for minimum charges. As, no production could be possible without the aid of power and hence there is no case for Commencement of Commercial Production till the cut off date. 8. We find that the ld. Commissioner has given cogent finding that the respondent in the year 2007-2008 brought capital goods from the Noida Unit worth ₹ 3.50 thousand. Further, they have shown purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X
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