Tax remission for a new unit must exclude existing factory extensions and same-site manufacturing setups.

The tax remission notification for a "new unit" was construed as excluding factories or workshops established on the site of an existing factory manufacturing the same goods, and also excluding additions or extensions of existing units for the same manufacture. The Tribunal's finding that the unit qualified was interfered with because it had not properly examined the appended note to the notification or the material facts regarding use of machinery and prior use of substantial parts of the premises. The earlier appellate order was set aside and the matter remitted for fresh decision in accordance with law.

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Issues: Whether the industrial unit was a "new unit" entitled to tax remission under the relevant notification, or an extension/addition to an existing factory falling outside the notification.

Analysis: The finding that the unit was a new unit was interfered with because the Tribunal had not properly examined the note appended to the notification, which excluded factories or workshops established on the site of an existing factory manufacturing the same goods and also excluded additions or extensions of existing units for manufacturing the same goods. The relevant factual aspects concerning use of machinery, earlier use of substantial parts, and other material considered by the assessing authority were not adequately evaluated by the Tribunal.

Conclusion: The matter required reconsideration by the Tribunal in the light of the notification and the relevant facts; the earlier appellate order was set aside and the case was remitted for decision according to law.

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