Excise exemption under a notification cannot be claimed twice after full benefit as a new industrial unit has already been taken.

The HC held that a unit already granted excise exemption as a new industrial unit under Clause 5(a) of Notification No. 20/2007-CE could not claim a second exemption period under Clause 5(b) on the basis of substantial expansion. It reasoned that the notification created two distinct categories-new units and existing units that expanded by at least 25% of fixed capital investment-and a unit that had already been treated as new could not later be reclassified as existing for further benefit. The Court applied strict construction of exemption notifications and rejected reliance on promissory estoppel because the policy benefit had already been fully availed.

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Issues: Whether a unit that had already obtained excise exemption as a new industrial unit under Clause 5(a) of Notification No. 20/2007-CE could claim a second period of exemption on alleged substantial expansion under Clause 5(b) of the same notification.

Analysis: The policy and notification contemplated two distinct categories: new units commencing commercial production within the notified period and existing units that had undertaken substantial expansion of not less than 25% of fixed capital investment. The petitioner had already been treated as a new unit and had received the full exemption contemplated under Clause 5(a). The Court held that such a unit could not thereafter be reclassified as an existing unit for the purpose of Clause 5(b). It further held that exemption notifications must be strictly construed, that eligibility must be shown within the terms of the notification, and that exemption cannot be enlarged by equity or by importing an additional benefit not expressly granted. The doctrine of promissory estoppel did not assist the petitioner because the benefit under the policy had already been availed.

Conclusion: The claim for a further exemption under Clause 5(b) was rejected, and the challenge failed.

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