Dharmadhikari, J. - (1.)These appeals have been preferred by the Commissioner of Central Excise, Shillong representing the Department of Central Excise to assail separate orders passed in appeals by the Customs, Excise and Gold (Control) Appellate Tribunal, Kolkata [hereinafter referred to as CEGAT]. The CEGAT by the impugned orders has rejected the appeals of the Department of Central Excise and held in favour of the respondent - The North-Eastern Tobacco Company Ltd. [for short the company] that it is eligible for claiming exemption from payment of duty under the Central Excise Notification No. 32/99-CE, dated 8-7-1999, issued under sub-section (1) of Section 5A of Central Excise Act of 1944 [hereinafter referred to as the Act].
(2.)The principal question raised by the learned counsel on behalf of the Department of Central Excise is whether the unit or factory established by the company in Export Promotion Industrial Park [hereinafter referred to as EPIP] at Amingaon in North-Eastern State of Assam can claim the status of a new industrial unit within the meaning of sub-clause (a) of clause 3 of the Exemption Notification dated 8-7-1999. It is not in dispute that all other conditions of the notification for claiming exemption from payment of duty are fulfilled and the company would be entitled to avail the benefit of the Exemption Notification, if the unit set up by it at Amingaon, answers the description of new industrial unit. The CEGAT by dismissing the appeals of the Department of Central Excise has held that the respondent/company is entitled to claim exemption from payment of duty under the Exemption Notification and on that basis entitled to adjustment of duty already paid on the cigarettes manufactured in its factory and is also entitled to refund of duty for the period covered by the notification.
(3.)The facts not in disputes are as under:- The respodnent/company was granted industrial licence No. CIL : 128(75) dated 1-5-1975 for setting up cigarette manufacturing unit at Silpukhuri, Guwahati in the State of Assam. M/s. Assam Industrial Development Corporation [hereinafter referred to as AIDC] was the promoter and the major shareholder in the company holding more than 51% of the share capital. As per the industrial licence, the factory was to be set up at Silpukhuri, Guwahati. The unit was, however, set up on the industrial plot allotted by AIDC at G.S. Road, Bangagarh, Dispur, Guwahati. On 4-3-1991, AIDC entered into a disinvestment Agreement which was duly approved by the Government of India, Ministry of Industry, Department of Industrial Development vide its letter No. 10(7)/89-CI dated 26-10-1990. According to the terms of the Disinvestment Agreement, the existing industrial shed at Bangagarh was to be handed over to AIDC and the factory was to be relocated at a new location anywhere in the State of Assam.