Exemption for new industrial unit upheld where no evidence showed relocation of the earlier unit's machinery or labour.

An exemption notification aimed at promoting industrial investment in the North-Eastern region was construed contextually and, where its language allowed, liberally. Because the notification did not define "new industrial unit" or exclude transferred units, and there was no evidence that machinery, accessories, components or labour from the earlier unit had been shifted to the Amingaon site, the later unit was treated as a fresh industrial unit. Mere correspondence seeking continuity of the earlier industrial licence did not establish relocation of an old unit. The Amingaon unit therefore qualified for the exemption, and the departmental appeals failed.

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Issues: Whether the unit set up at Amingaon, Guwahati was a "new industrial unit" entitled to exemption under Notification No. 32/99-C.E. dated 08.07.1999.

Analysis: The exemption notification did not define "new industrial unit". The object of the notification was to encourage industrial investment and development in the North-Eastern region, and such exemption provisions are to be construed contextually and, where the language permits, liberally. There was no material to show that the machinery, accessories, components, or labour force from the earlier closed unit at Bangagarh had been shifted to Amingaon. Mere correspondence seeking endorsement of the earlier industrial licence for the new location did not establish that the new unit was a transferred or relocated old unit. Since the notification did not exclude a unit merely because the assessee sought continuity of its industrial activity through the same licence, the unit at Amingaon was properly treated as a fresh industrial unit for the purpose of the exemption.

Conclusion: The unit at Amingaon qualified as a new industrial unit and was entitled to the exemption; the departmental appeals failed.

Ratio Decidendi: Where an exemption notification does not define "new industrial unit" or exclude transferred units, and there is no evidence that the earlier unit's machinery or establishment was shifted, the later unit must be treated as a new unit for the purpose of the exemption, construed in light of the notification's object and context.

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