Case Law Details
Agarwal Aluminiums Vs Commissioner (CESTAT Delhi)
In the case of M/s Agarwal Aluminium versus the Commissioner of Central Excise and Service Tax (CESTAT Delhi), an appeal was filed to challenge the order-in-original dated 27.01.2020. This article provides a detailed analysis of the case, focusing on the denial of area-based excise duty exemption based on the requirement that commercial production should have commenced on or before 31.03.2010.
Detailed Analysis
The central issue in this case revolves around whether Agarwal Aluminiums were eligible for the benefits outlined in Notification No. 50/2003-CE, dated 10.06.2003. This notification offered area-based excise duty exemption but imposed the condition that the factory must have initiated “commercial production on or before 31.03.2010.”
Agarwal Aluminiums claimed the benefit of this exemption, but a show cause notice was issued on 16.07.2015 after a comprehensive investigation. The investigation revealed that the appellant had not initiated commercial production before the specified date. Consequently, a demand was confirmed by the Commissioner on 22.07.2016.
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