Area-based exemption under Notification No. 50/2003-C.E. hinged on timely written option and verified facts; matter remanded.

Area-based exemption under Notification No. 50/2003-C.E. depended on a manufacturer exercising the exemption option in writing before the first clearance, with the option then operating for the rest of the financial year. The dispute turned on disputed factual questions about when the intimation was filed and when the unit was taken over and operated by the appellant. Those facts required verification from the record and supporting evidence, so the issue could not be finally determined at the appellate stage. The matter was therefore remanded for fresh verification and adjudication by the Original Authority.

---

---

Issues: Whether the appellant was entitled to claim area-based exemption under Notification No. 50/2003-C.E. and whether the intimation or option to avail the exemption had been exercised within the time and manner required by the notification.

Analysis: The notification required the manufacturer to exercise the option in writing before effecting the first clearance, and such option would operate from the date of exercise and remain effective for the rest of the financial year. The controversy turned on the disputed facts concerning the date of filing of intimation and the date from which the unit was taken over and run by the appellant. As these facts required verification from the record and supporting evidence before the jurisdictional authority, the dispute could not be finally resolved at the appellate stage. The appellant's objection regarding reliance on the earlier letter also warranted examination by supplying a copy and inviting comments.

Conclusion: The matter required fresh verification and adjudication by the Original Authority, and the impugned order was set aside with remand.

---