Area-based exemption survives transfer where prior eligibility is verified and ownership changes do not defeat notification conditions.

Area-based exemption under Notification No. 50/2003-CE continued after transfer of the gold and silver unit because the earlier remand was limited to verifying whether the unit had already been availing the exemption before transfer. The record, including the Superintendent's report, confirmed production of gold bars and exemption use before the transfer. The argument that only part of the unit had been sold did not upset that factual finding. The circulars relied on also supported the view that addition of plant, change of ownership, or change of premises did not by themselves defeat exemption where the notification conditions were otherwise met. The respondent therefore remained entitled to the exemption.

---

---

Issues: Whether the respondent was entitled to the area based exemption under Notification No. 50/2003-CE after purchase of the gold and silver unit, and whether the earlier remand had already concluded the limited question requiring verification of eligibility before transfer.

Analysis: The earlier remand order had confined the enquiry to a narrow factual verification, namely whether the gold and silver unit was already availing the exemption before its transfer to the respondent. The record, including the Superintendent's report, confirmed that the unit had produced gold bars and was availing the exemption prior to transfer. The contention that only a part of the unit had been sold did not dislodge the earlier finding or the factual verification made pursuant to remand. The circulars relied upon supported the view that addition of plant, change of ownership, or change of premises did not, by themselves, defeat the exemption where the unit otherwise satisfied the notification conditions.

Conclusion: The respondent remained entitled to the exemption, and the Revenue's challenge failed.

---