Substantive exemption cannot be denied for a khasra-entry mismatch where the unit is located in the notified industrial estate.

An exemption under Notification No. 56/2002-C.E. was upheld because the manufacturing unit was undisputedly located in SICOP Industrial Estate, Kathua, which was specifically listed in Annexure-II. The revenue relied only on the absence of the unit's khasra number against SICOP Industrial Estate and its appearance against SIDCO Industrial Estate, but that discrepancy was treated as a drafting or clerical error. Since the substantive condition for exemption was satisfied by the unit's actual location in the notified industrial estate, the refund and exemption could not be denied on the basis of the khasra-reference mismatch.

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Issues: Whether the assessee was entitled to exemption under Notification No. 56/2002-C.E. notwithstanding that the khasra number of its unit was not mentioned against the industrial estate in Annexure-II, though the unit was undisputedly located in the specified industrial estate.

Analysis: The exemption notification granted benefit to eligible goods manufactured and cleared by units located in the industrial areas specified in Annexure-II. The assessee's unit was found to be located in SICOP Industrial Estate, Kathua, which was expressly specified in the notification. The objection of the revenue was confined to the fact that the particular khasra number in which the unit stood was shown against SIDCO Industrial Estate and not against SICOP Industrial Estate. The omission of the khasra number against the correct industrial estate was treated as a possible drafting or clerical error. Since the unit was otherwise clearly situated in the notified industrial estate, the substantive condition for exemption stood satisfied.

Conclusion: The assessee was entitled to the exemption, and the revenue's objection based only on the non-mention of the khasra number against SICOP Industrial Estate was rejected.

Final Conclusion: The appeals failed because the notification was applied on the basis of the unit's actual location in the notified industrial estate, and the refund benefit could not be denied for the khasra-reference discrepancy.

Ratio Decidendi: Where a unit is indisputably located in a specified industrial estate mentioned in an exemption notification, a mere mismatch or omission in the corresponding khasra entry cannot defeat the substantive exemption.

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