Village industry exemption turned on rural-area assembly of components, and factual findings supported entitlement to relief.

Exemption under Notification No. 88/88-C.E. was available only to eligible village industries meeting the notification's conditions, including that the relevant electronic goods had to be assembled from individual components in a rural area. On the facts found, the respondent satisfied those conditions, and a departmental certificate also recorded that the components were assembled in a factory situated in a rural area. Because the dispute turned on factual findings rather than a substantial question of law, the exemption was upheld and the appeal failed.

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Issues: Whether the respondent was entitled to exemption under Notification No. 88/88-C.E. dated 01.03.1988 despite the objection that the individual components of the electronic goods were not assembled in a rural area.

Analysis: The exemption was available to eligible village industries subject to the conditions in the notification, including the requirement that for the relevant goods, the individual components must be assembled in a rural area. On the facts found, the respondent had satisfied the conditions of the notification. The respondent also relied on a departmental certificate stating that the components were assembled in its factory situated in a rural area. In view of these factual findings, no substantial question of law arose.

Conclusion: The respondent was held entitled to the exemption, and the appeal was dismissed.

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