Factory-linked excise exemption continues despite change in ownership of the manufacturing unit

Exemption under Notification No. 4/2006-C.E. remained available where the specified factory continued to exist, even though ownership changed from a Government department to a Government corporation. The exemption was attached to Security Paper Mills, Hoshangabad, as the identified manufacturing unit, not as a personal benefit limited to the former departmental owner. Because the notification was framed with reference to the factory and not the identity of the manufacturer, the change in ownership did not alter eligibility. The impugned order was therefore unsustainable and the appellant remained entitled to the exemption.

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Issues: Whether exemption from duty under Notification No. 4/2006-C.E. dated 01.03.2006 remained available when the factory continued to exist but its ownership changed from a Government department to a Government corporation.

Analysis: The notification granted exemption to security paper manufactured by Security Paper Mills, Hoshangabad, and the exemption was attached to the factory rather than to the identity of the manufacturer. Since the specified factory continued to exist and the notification was not framed as a personal exemption to the former departmental owner, the change in ownership did not affect eligibility for the benefit.

Conclusion: The exemption was available to the appellant, and the impugned order was unsustainable.

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