Area based exemption continues despite ownership or premises changes, but factual entitlement must still be verified on remand.

Area based exemption was treated as continuing in principle where an eligible unit undergoes change of ownership or factory premises, because the notification and Board circulars permitted addition or modification of plant and machinery and production of new products during the exemption period. Those changes were not decisive by themselves. However, the key factual issue was whether the purchased gold unit had in fact been availing the exemption, and that required verification by the adjudicating authority. The matter was therefore remanded for limited factual determination, with directions to redecide entitlement after giving reasonable opportunity and considering further evidence if necessary.

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Issues: Whether area based exemption continued to be available despite change of ownership and change of plot, and whether the matter required remand for verification of whether the purchased gold unit had been availing the exemption.

Analysis: The exemption notification was understood, with reference to the Board circulars, to permit addition or modification of plant and machinery and production of new products by an eligible unit during the exemption period. The change of ownership and change of factory premises were treated as not decisive in themselves. However, the core factual question remained whether the gold unit purchased by the respondent had in fact been availing the area based exemption, and that aspect required verification by the adjudicating authority.

Conclusion: The matter was remanded to the adjudicating authority to verify the factual entitlement to area based exemption in respect of the gold unit and to decide the issue afresh after giving reasonable opportunity and considering additional evidence, if necessary.

Final Conclusion: The impugned order was set aside and the dispute was sent back for limited factual determination on exemption entitlement.

Ratio Decidendi: An eligible unit's area based exemption is not lost merely because of change of ownership or factory premises, but factual entitlement must still be verified where the exemption claim depends on whether the unit was already enjoying the benefit.

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