Exemption under industrial notification depended on mandatory declaration and valid departmental intimation; prior clearances remained under SSI relief.

Entitlement to exemption under Notification No. 49-50/2003 turned on compliance with the mandatory declaration requirement and whether the department had been sufficiently informed of the unit's operations. In the absence of documentary proof that the declaration was filed, the exemption could not be sustained for the earlier period. However, the communication dated 16.10.2008 from the General Manager, District Industries Centre, Shimla to the Central Excise department was treated as valid intimation, and exemption was accepted from that date onward. The prior clearances were covered by SSI exemption under Notification No. 08/2003-CE, so no duty demand survived.

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Issues: Whether the appellant was entitled to exemption under Notification No. 49-50/2003 dated 10.06.2003 despite the absence of documentary proof of filing the mandatory declaration, and whether the communication from the General Manager, District Industries Centre, Shimla dated 16.10.2008 constituted valid intimation to the department for availing the exemption.

Analysis: The appellant failed to produce documentary evidence showing filing of the mandatory declaration required for the exemption notification, so the claim for exemption could not be sustained for the period unsupported by such compliance. However, the communication dated 16.10.2008 from the General Manager, District Industries Centre, Shimla, addressed to the Central Excise department, established that the unit had come to the knowledge of the department and was treated as sufficient intimation under the notification. On that basis, the exemption was accepted from 16.10.2008 onwards. For the earlier period, the clearances were held to be covered by SSI exemption under Notification No. 08/2003-CE dated 01.03.2003, and no duty demand survived.

Conclusion: The appellant was held entitled to exemption under Notification No. 49-50/2003 dated 10.06.2003 from 16.10.2008, with prior clearances protected by SSI exemption, and the duty demand was unsustainable.

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