Exemption eligibility under Notification 56/2002-CE depends on verified factory location and notice-bound evidence.

Eligibility for exemption under Notification No. 56/2002-CE turned on whether the unit at Khasra No. 152, Ashok Nagar, Satwari, Jammu fell within the notified area and whether the Revenue could rely on material not included in the show cause notice. The assessment relied on the Tehsildar's report, Annexure-II to the notification, and the TRU clarification requiring verification of the factory's location from land revenue records. Material introduced later at the appellate stage, but absent from the show cause notice, could not be used to deny the benefit. On that basis, the unit was treated as eligible for the exemption.

---

---

Issues: Whether the respondent's unit situated at Khasra No. 152, Ashok Nagar, Satwari, Jammu was eligible for exemption under Notification No. 56/2002-CE dated 14.11.2002 and whether the Revenue could deny the benefit on the basis of material not forming part of the show cause notice.

Analysis: The unit was found to be located at Khasra No. 152 in the area notified under the exemption notification, and the Commissioner (Appeals) had relied on the Tehsildar's report and the notification's Annexure-II to conclude that the location fell within the specified area. The report subsequently relied upon by the Revenue was not part of the show cause notice and could not be used to sustain the denial at the appellate stage. The clarification issued by the TRU also required the correct location of the factory to be verified from land revenue records and the Tehsildar's report supported the assessee's claim.

Conclusion: The respondent was entitled to the exemption under Notification No. 56/2002-CE, and the Revenue's challenge failed.

---