Exemption notification benefit upheld where Revenue failed to prove any non-exempted process by the assessee.

In an exemption dispute, the assessee was held entitled to the benefit of Notification Nos. 253/82 and 297/79 because the findings of fact showed only exempted activities and no other process. The Revenue sought denial of exemption on the basis of alleged non-exempted processes, but the show cause notice did not specifically allege such activity and no statement or other evidence was produced to prove it. In exemption matters, where denial depends on showing that the assessee carried on non-exempted processes, the burden lies on the Revenue; that burden was not discharged, and exemption could not be refused on assumptions or presumptions.

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Issues: Whether the assessee was entitled to the benefit of Notification Nos. 253/82 and 297/79, and whether the Revenue had discharged the burden of proving that the assessee carried on non-exempted processes.

Analysis: The authorities below had recorded findings of fact that the assessee carried on only the exempted activities covered by the notifications and no other activity. The show cause notice did not specifically allege any unexempted or unspecified process, and the Revenue did not produce any statement or other evidence to establish such activity. In exemption matters, where denial of benefit depends upon proving that the assessee engaged in non-exempted processes, the burden lies on the Revenue; that burden was not discharged. The benefit could not be refused on assumptions and presumptions.

Conclusion: The assessee was rightly held entitled to the exemption notifications, and the Revenue's appeal failed.

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