Rural area exemption for branded goods upheld where certificates supported the factory's location and no contrary evidence was produced.

Notification No. 8/2002-CE exempts goods bearing a brand name or trade name where manufacture takes place in a factory located in a rural area. On the evidence, certificates from the Tehsildar and the Regional Officer, MIDC showed that the unit was situated at Mouza Nildoh, Tehsil Hingna, and this was treated as a rural area. Because the department did not dispute the genuineness of those certificates or adduce contrary evidence, the rural area condition was accepted and the exemption was available despite affixation of the brand name.

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Issues: (i) Whether the respondent was entitled to the benefit of Notification No. 8/2002-CE dated 01.03.2002 despite affixation of the brand name on the goods, on the footing that the factory was located in a rural area.

Analysis: The notification exempts goods bearing a brand name or trade name if they are manufactured in a factory located in a rural area. The evidence on record included certificates from the Tehsildar and the Regional Officer, MIDC, certifying that the unit was situated in Mouza Nildoh, Tehsil Hingna, which was treated as a rural area. The departmental challenge did not controvert the genuineness of those certificates or produce contrary evidence to show that the area was not rural. In these circumstances, the finding that the unit satisfied the rural area condition was upheld.

Conclusion: The respondent was entitled to the exemption under Notification No. 8/2002-CE and the Revenue's challenge failed.

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