Employment-based exemption under excise notification upheld where the unit met the prescribed regular employment threshold.

Notification No. 56/2002-CE, as amended, required a certificate from the General Manager of the concerned District Industries Centre evidencing creation of additional regular employment. On the record, the certificate stated that the unit had increased regular employment by more than 25%, which met the prescribed threshold. The exemption claim was therefore accepted, and the benefit under the notification was upheld on the basis that the employment condition had been satisfied.

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Issues: Whether the respondent was entitled to exemption under Notification No. 56/2002-CE, as amended, on the basis that it had created more than 25% additional regular employment.

Analysis: The condition in the notification required the unit to produce a certificate from the General Manager of the concerned District Industries Centre showing creation of additional regular employment. The certificate on record stated that the respondent had increased regular employment by more than 25%, satisfying the prescribed threshold. The authorities below, therefore, accepted the respondent's claim for exemption under the notification.

Conclusion: The respondent satisfied the employment condition for availing the exemption notification and the grant of benefit was upheld.

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