Exemption notification benefit upheld where contemporaneous records proved commercial production before the cut-off date.

Entitlement to exemption under Notification No. 50/2003-CE depended on proof that commercial production had commenced on or before the specified cut-off date. CESTAT noted that contemporaneous records, including purchase documents, electricity and meter data, VAT and sales tax papers, pollution control clearance, registration documents, invoices and verification material, established prior commencement of production. The department's objection that the unit was found closed during inspection was not supported by cogent corroborative evidence and could not displace the documentary record. On that basis, the mandatory condition for exemption was held satisfied and the revenue's challenge failed.

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Issues: Whether the respondent was entitled to exemption under Notification No. 50/2003-CE dated 10.06.2003 on the ground that commercial production had commenced on or before 31.03.2010.

Analysis: The authorities below found, on the basis of contemporaneous documents such as purchase records, electricity and meter records, VAT and sales tax papers, pollution control clearance, registration documents, invoices and the verification material, that the unit had begun commercial production before the cut-off date. The departmental objection rested substantially on the fact that the unit was found closed during inspection, but no cogent or corroborative evidence was produced to displace the documentary material showing prior commencement of production. The exemption notification required satisfaction of the stipulated condition, and the evidence on record established that condition.

Conclusion: The respondent had fulfilled the mandatory condition for exemption and the benefit under Notification No. 50/2003-CE was rightly allowed; the revenue's appeal failed.

Ratio Decidendi: Entitlement to an exemption notification depends on proof of compliance with the prescribed condition, and where contemporaneous documentary evidence establishes commencement of commercial production before the cut-off date, the benefit cannot be denied on the basis of a mere inspection-based presumption.

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