Fresh industrial unit exemption upheld where commercial production began within the notified period and contemporaneous records supported eligibility.

Eligibility for the time-bound exemption under Notification No. 20/2007-CE depended on proof that the unit was a genuinely fresh industrial unit that had commenced commercial production within the notified period. Contemporaneous records supported this finding: machinery and raw materials were procured from 2016, machinery was installed before 31.03.2017, the Department was intimated on 31.03.2017, a commercial production certificate was issued, duty was paid on initial clearances, and ER-1 returns reflected production and clearance. The absence of evidence on one input was insufficient to overcome those documents, and shared premises or common partners with an earlier concern did not by itself negate new-unit status. The exemption was therefore available.

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Issues: Whether the appellant was a new industrial unit that had commenced commercial production on or before 31.03.2017 so as to qualify for exemption under Notification No. 20/2007-CE dated 25.04.2007.

Analysis: The documentary record showed procurement of machinery and raw materials from 2016 onwards, installation of machinery before 31.03.2017, intimation to the Department on 31.03.2017, issuance of a certificate of commercial production by the Department of Industries, payment of duty on initial clearances, and filing of ER-1 returns reflecting production and clearance. The absence of evidence regarding one input was not treated as sufficient to dislodge the contemporaneous documents. The fact that the unit functioned in the same and had common partners with the earlier concern was held not, by itself, to negate the status of a new industrial unit where the evidence established fresh establishment and commencement of production within the notified period.

Conclusion: The appellant was held eligible for the benefit of Notification No. 20/2007-CE dated 25.04.2007.

Ratio Decidendi: Eligibility to a time-bound exemption for a new industrial unit depends on credible evidence of fresh establishment and commencement of commercial production within the notified period, and it cannot be denied merely because the unit shares premises or personnel with an earlier concern.

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