Commercial production of clinker does not satisfy a cement unit's exemption condition under a time-bound notification.

A new cement unit could not claim exemption under Notification No. 50/2003-C.E. merely because it had commenced commercial production of clinker before the cut-off date. The exemption condition was tied to commencement of commercial production of the notified goods, namely cement, and clinker production did not satisfy that requirement because clinker was covered by the notification's negative list. Prior decisions cited by the assessee were distinguished on facts, so the exemption claim failed.

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Issues: Whether a new cement unit was entitled to exemption under Notification No. 50/2003-C.E. when it had commenced commercial production of clinker, but not of cement, before the prescribed cut-off date.

Analysis: The exemption condition required the new cement unit to commence commercial production within the stipulated period, and the expression had to be understood in the context of the unit set up for manufacturing cement. Commercial production of clinker did not satisfy that requirement, because clinker was itself included in the negative list under the notification and could not be treated as commercial production of the cement unit for claiming exemption on cement. Prior decisions relied upon by the assessee were distinguishable on facts and did not support the claim.

Conclusion: The unit was not eligible for the benefit of Notification No. 50/2003-C.E. on the basis of clinker production, and the claim failed.

Ratio Decidendi: For a new industrial unit claiming exemption under a time-bound notification linked to commencement of commercial production, the relevant production must be of the notified goods for which exemption is sought, and production of a different article that falls within the negative list does not satisfy the condition.

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