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TMI Blog2020 (3) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ation was submitted on 30.6.1999, Rule 28B of the Rules was inserted will not automatically bring the application for exemption under Rule 28B. If that is so, the proviso to sub-rule (3)(a) to Rule 28B would be rendered otiose. The proviso has extended the applicability of Rule 28A of the Rules. There cannot be any serious objection with regard to fulfilment of the three conditions as the unit had started commercial production on 15.4.1999 i.e. prior to insertion of Rule 28B of the Rules - Appellate Authority rightly allowed the appeal by considering the exemption application under Rule 28A of the Rules. The second contention that no land was purchased or taken on lease or rent is against the record. The diversified unit which started co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was granted for 9 years i.e. from 1.9.1994 to 31.8.2003. In 1995, a diversified unit was set up to produce Milk Powder, Dairy Whitener, Desi Ghee etc. The diversified unit was also allowed exemption for a period of 9 years i.e. from 22.12.1995 to 21.12.2004. An expansion of the diversified unit was undertaken. The expanded unit started commercial production on 15.4.1999. Application in form ST-70 was submitted on 30.6.1999 claiming exemption under Rule 28A of the Rules. The application was rejected by the Higher Level Screening Committee (for short, 'HLSC') on 25.5.2000 holding that the product i.e. desi ghee is covered under negative list of Rule 28B. The statutory appeal filed by the assessee was allowed by Commissioner of Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industries Department. Provided that the benefit of exemption/deferment shall be admissible under rule 28A to the Industrial units which have taken following effective steps: (i) Land has been purchased for the project or taken on lease or rent; (ii) The Industrial Unit has got its building plans approved in case the unit is located in the controlled area as defined by the Department of Town and Country Planning. In case the unit is located outside the controlled area, the building plans should be approved by the approved Architect; 50% cost of the civil works of the approved plan of the building should have been completed and paid for by 31st July, 1997. (iii) 50% machinery has been booked by placing confirmed order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... civil works should have been completed and paid by 31.7.1997 and lastly 50% of machinery had been booked and atleast 10% amount paid in advance as on 31.3.1998. All the three conditions were required to be fulfilled. The ground for rejection of exemption claim by HLSC could be sustained if the case was made out that any one of the conditions of proviso to Rule 28B(3)(a) of the Rules were not met. It was in that eventuality that application was to be dealt with under Rule 28B and the negative list would have relevance. Merely because by the time the application was submitted on 30.6.1999, Rule 28B of the Rules was inserted will not automatically bring the application for exemption under Rule 28B. If that is so, the proviso to sub-rule (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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