Exemption for export oriented undertakings under Notification No. 23/2003-C.E. applied where the notification expressly covered such units.

Notification No. 23/2003-C.E. was held applicable to goods manufactured in a 100% export oriented undertaking because the notification expressly extended the exemption to such units. The proviso to Section 5A of the Central Excise Act, 1944 was considered, but it did not exclude the benefit where the notification itself specifically covered export oriented undertakings. Denial of the exemption was therefore not sustainable.

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Issues: Whether Notification No. 23/2003-C.E. was applicable to a 100% export oriented undertaking in view of the proviso to Section 5A of the Central Excise Act, 1944.

Analysis: The proviso to Section 5A was relied upon to contend that exemption notifications are ordinarily meant for domestic units unless specifically extended to export oriented units. The notification itself, however, expressly referred to goods manufactured in an export oriented undertaking and specifically conferred the benefit on such units.

Conclusion: Notification No. 23/2003-C.E. was applicable to the respondent as a 100% export oriented undertaking, and denial of the exemption was not sustainable.

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