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TMI Blog2023 (12) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... G Cylinders and have started a unit for manufacture of ACSR Conductors and claimed the exemption under Notification No.50/2003; the facts of both the cases are identical. The machinery manufactured by the appellants by establishing a separate unit which started production after 07.01.2003, is eligible for benefit of Notification No.50/2003 - the contention of the learned Counsel for the appellant that there is no condition, whatsoever, in the said notification, so as to restrict benefit to only those units which are permitted by the District Industries Centre or any other authority, is agreed. Principles of unjust enrichment - HELD THAT:- The appellants have submitted a certificate issued by a professional Charted Accountant, which has not been negated with evidence and therefore, it is found that there is no reason as to why the certificate should be disbelieved. Moreover, the bona fides of the appellant are established by the fact that an amount of Rs.93,120/- was not claimed by them for the reason that the same has been recovered from the customers; the same has been confirmed by the report of the Revenue Officer also - the claim of the appellant that in respect of an am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Tribunal in the case of Tirupati LPG Industries Ltd. 2015 (324) ELT 201 held that manufacturing more than one commodity in different sections are to be considered as consisting of more than one manufacturing unit and each unit has to be independently eligible for exemption. 3. Learned Counsel further submits that it is not correct for the Revenue to place reliance on the definitions contained in the policy formulated by Government of Himachal Pradesh; learned Commissioner also erred in observing that the appellant s claim must be supported by a certificate issued by Director of Industries or District Industry Centre, as there is no such condition built into the notification. He also submits that there is no unjust enrichment as is cleared from the Charted Accountant Certificate. The appellants did not claim an amount of Rs.93,120/- which was recovered from their customers; he also submits that an amount of Rs.32,206/- merits to be allowed on cum-value basis. 4. Shri Narinder Singh, assisted by Shri Harish Kapoor, learned Authorized Representatives for the Department, reiterates the findings of the impugned order and submits that the appellant s unit does not fall unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctors and claimed the exemption under Notification No.50/2003; the facts of both the cases are identical. We find that Tribunal observed in the above cited case as follows: 7.1 We do not agree with the contention of the Department. The notification No. 50/2003-C.E., dated 10-6-2003 exempts from duty, the goods other than those mentioned in Annexure I of the notification, which has been cleared from a unit located in the Industrial Growth Centres or Industrial Infrastructure Development Centres or Export Promotion Industrial Park, or Industrial Estates or Industrial areas or Commercial Estates or Scheme Areas as the case may be specified in Annexure II and Annexure III appended thereto. The Industrial areas, Industrial estates etc. are specified in Annexure II and Annexure III. In the table appended to the notification in Annexure II and III, while the 2nd column mentions the name of the Industrial area, Industrial estate etc. the 3rd and 5th columns mention the village and the Tehsil under which the Industrial area/ Industrial estate etc. falls. Column 4 mentions the khasra number of the plots of land of which the Industrial area/ Industrial estate comprises. In this case the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant intimated to the Range Superintendent in their letter dated 7-11-2003 about commencing commercial production of ACSR conductors with effect from 1-4-2003. The question arises as to whether the conductor unit, in the circumstances mentioned above, would be eligible for exemption under Notification No. 50/2003-C.E., dated 10-6- 2003. 8.1 Notification No. 50/2003-C.E. issued on 10-6- 2003, in terms of its para 2 is applicable to two kinds of units - (1) New Industrial units which have commenced their commercial production on or after 7-1-2003; (2) Industrial units existing before 7-1-2003, but which have undertaken substantial expansion by the way of increase in installed capacity by not less than 25%, on or after 7-1-2003. Subsequently, by amending Notification No. 27/2005-C.E., dated 19-5-2005, a sunset clause was introduced in Notification No. 50/2003-C.E. and accordingly the new industrial units set up in area specified in Annexure II and III for being eligible for the exemption must have commenced commercial production on or after 7-1-2003, but not later than 31-3-2010. Similarly, the industrial unit existing before 7-1-2003 in area mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their commercial production on or after 7-1-2003. This condition becomes important for the units set up before 7-1-2003, as the units set up on or after 7-1-2003 would naturally have commenced their commercial production on or after 7-1-2003 and thereby would satisfy this condition. If an Industrial unit installed prior to 7-1-2003 had commenced its commercial production prior to 7-1- 2003, it would be out of the purview of the notification. For this purpose, distinction has to be made between Commercial Production and Trial Production . Though the term commercial production is not defined in this notification, it should be construed in contradistinction with the term Trial Production . Trial Production is followed by commercial production. Trial Production is the production during the process of commissioning of a plant. The process of commissioning of a manufacturing plant starts after completion of erection installation. During commissioning, the various machinery is run on trial/test basis and if the production is not of the desired quantity and of the desired quality, the necessary adjustments are made. The running of a plant during its commissioning is only a trial run ..... X X X X Extracts X X X X X X X X Extracts X X X X
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