ASSAM PETROCHEMICALS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) The Appellant which is Government of Assam Undertaking is engaged in the manufacturing of Formalim, Menthol and Carbon Dioxide. It set up its unit somewhere in the 1970s. The Government of India issued two Notifications viz. Notification No. 32/99-C.E. and Notification No. 33/99-C.E. both dated 8-7-1999 whereby benefit of exemption from payment of Central Excise duty was extended to factories in North Eastern States. This benefit was made available to those who set up new industrial units on or after 24th December, 1997. It was also made available to the existing industrial units if they increased their production capacity by 25%. In para 3 of the Notification conditions were laid down which were to be satisfied in this behalf. This para reads as under:

(2.) The Appellant endeavored to seek the benefit of the aforesaid notice contending that since the production was started only on 16-2-1998, which was after 24-12-1997 it was entitled to the benefit of the said circular. The Department, however, denied the same on the ground that the installation took place before the cutoff date that is 30-9-1997 and not thereafter. Against this view taken by the adjudicating authority, the Appellant preferred the appeal before the CESTAT which has also dismissed the appeal [2004 (170) E.L.T. 306 (Tri.-Del.)]. In arriving at the aforesaid conclusion, the Tribunal has mentioned that the language of the para 3(b) clearly states that the substantial expansion should have been undertaken after 24-12-1997 whereas in the present case it was undertaken much before, i.e., on 30-9-1997. In the process, it has also contrasted the language of Clause 3(b) with Clause 3(a) noticing that Clause 3(a) mentions 'commercial production' whereas Clause 3(b) talks of 'undertaken substantial expansion'. The Tribunal also referred to Central Board of Excise and Customs clarification letter F. No. 354/08/98-TRU, dated 9-7-1999. On the aforesaid basis following conclusion is arrived at by the Tribunal: