Excise case
nitin jain
(Querist) 25 August 2011
This query is : Resolved
dear sir/madum
As per the attached excise exemption policy for uttranchal,we have an exsisting unit in uttrakhand.we go for expansion before 7 jan 2003.our commercial production start after 7 jan 2003.we are entitled for excise exeption or not?please clarify us.
thanx
R.Ramachandran
(Expert) 25 August 2011
According to the Exemption Notification in question, the existing industrial unit(s) should "undertake substantial expansion by way of increase in installed capacity by not less than twenty five per cent on or after 7th day of January, 2003."
In your case, the expansion had taken place prior to 7th January 2003. Therefore, one of the main condition of the exemption notification is not getting fulfilled and therefore you will not be eligible for the exemption.
prabhakar singh
(Expert) 25 August 2011
agree with interpretation forwarded by Expert : R.Ramachandran
nitin jain
(Querist) 25 August 2011
dear sir,
we think that installation of plant and machinery does not amount to expansion fullfilled as per the guideline.it is the commercial production which conclude whether we will lie for exemption or not.suppose we went for expansion prior to 7 jan 2003 but actual commercial production is less than 25 percent then we will not lie.but if it is 25 percent or more we will lie.it is the commercial production which bring a unit in exemption.
you please read the policy as whole not like "undertake substantial expansion by way of increase in installed capacity by not less than twenty five per cent on or after 7th day of January, 2003."
R.Ramachandran
(Expert) 25 August 2011
If you are so sure, you would not have raised this query at all.
Further, the date 7th Jan 2003 is contained in the Notification. The expansion has to take place ON OR AFTER this date. However, the commercial production should start before another prescribed dead line. Therefore there are two specific dates.
If according to you only commercial production is a must, then there was no need at all for prscribing the 7.1.2003 date.
To put it plainly, your understanding is totally incorrect.
nitin jain
(Querist) 26 August 2011
Respected Sir, the issue is that, the Honb'le Prime Minister had announce the incentives for State Of Uttrakhand And Himachal Pardesh during his visit at Nainital, during 29-03-2002 to 31-03-2002. Accordingly ministry of commerce has announce the policy on 07-01-2003 and on that Office memorandum, ministry of finance has issued the notification no. 49/2003 and 50/2003 on dt 10-06-2003. Now the point is in consideration is that those existing units who had commence the expansion programme before 07-01-2003 but completed the same expansion on or after 07-01-2003, and commence the commercial production from such expanded capacity on or after 07-01-2003, is eligible for exemption or not.
nitin jain
(Querist) 05 September 2011
dear sir,
please reply.
thanx
