Exemption for new sugar unit upheld where amended licence and sugar director certification supported eligibility under the incentive scheme.

Exemption under Notifications Nos. 130/83-C.E. and 131/83-C.E. depended on a letter of intent or industrial licence issued within the prescribed period for a new sugar factory or capacity expansion, supported by certification from the Chief Director, Directorate of Sugar. The record showed earlier expansion permissions, later renewal, a representation treating the project as a new unit, and an amended licence deeming the earlier licence amended for setting up a new unit. The Chief Director's certificate also supported eligibility. On these facts, the exemption could not be denied merely because the formal amendment was issued later, and the appellants were entitled to the benefit.

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Issues: Whether the appellants were entitled to exemption under Notification No. 130/83-C.E. and Notification No. 131/83-C.E. in respect of the sugar factory treated as a new unit for the incentive scheme.

Analysis: The eligibility condition required a letter of intent or industrial licence issued between 1-10-1980 and 30-9-1985 for setting up a new sugar factory or for increasing the capacity of an existing factory, together with certification by the Chief Director, Directorate of Sugar. The record showed earlier permissions for substantial expansion, later renewal of the licence, subsequent representation treating the project as a new unit, and an amended licence stating that the earlier licence was to be deemed amended for setting up a new unit. The certificate of the Chief Director of Sugar also supported the appellants' claim. In these circumstances, denial of the benefit merely because the formal amendment was issued later was not justified.

Conclusion: The appellants were entitled to the exemption under Notification No. 130/83-C.E. and Notification No. 131/83-C.E.

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