Commercial production before the exemption cut-off was established, securing area-based tax relief under the notification.

Commercial production was held to have commenced before the 31.03.2010 cut-off for area-based exemption under Notification No. 15/2003-CE. Timely filing of the declaration, invoices showing procurement of capital goods, raw materials and components before the relevant date, and statements from concerned persons supported the finding of pre-cut-off production. The first clearance of multimedia speakers on 31.03.2010 was corroborated by the purchaser's confirmation of receipt. Departmental objections based on later testing equipment purchases and the absence of brand permission letters were found insufficient to displace the evidence. The appellant was therefore entitled to the notification benefit.

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Issues: Whether the appellant had commenced commercial production before 31.03.2010 so as to qualify for the area based exemption under Notification No. 15/2003-CE dated 10.06.2003.

Analysis: The appellant had filed the declaration in time and produced invoices showing procurement of capital goods, raw materials and components prior to 29.03.2010. Statements of relevant persons indicated that some production had begun before 31.03.2010. The first clearance of 10 multimedia speakers under Invoice No. 1 dated 31.03.2010 was corroborated by the purchaser's statement, which confirmed receipt of the goods. The departmental objections regarding later purchase of testing equipment and non-production of brand permission letters were found insufficient to dislodge the evidence of commencement of production before the cut-off date.

Conclusion: The appellant had established commencement of commercial production before 31.03.2010 and was entitled to the benefit of the notification.

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