Section-wise worker records can establish exemption eligibility when documentary evidence shows the prescribed threshold was not crossed.

Exemption eligibility under Notification No. 88/77-C.E. depended on whether the footwear section of the factory had worker strength below the prescribed limit, and the authority accepted section-wise attendance registers and seizure records as reliable proof. The finding that the footwear section employed fewer workers than the threshold was supported by documentary material, not conjecture, and was therefore treated as a proper factual determination. On that basis, the exemption was sustained, the proceedings were dropped, and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to exemption under Notification No. 88/77-C.E. on the basis that the relevant section-wise strength of workers was below the prescribed limit, and whether the finding of eligibility rested on proper evidence.

Analysis: The dispute turned on whether the worker threshold had to be tested with reference to the footwear section of the factory and whether the adjudicating authority had relied merely on conjecture. The attendance registers and connected seizure records were available with the department and showed the deployment of workers section-wise. The authority below examined those records along with the submissions and recorded a finding that the number of workers in the footwear section was below the prescribed limit. That finding was based on documentary material and not on guesswork.

Conclusion: The assessee was held entitled to the exemption and the Revenue's challenge failed.

Final Conclusion: The order dropping the proceedings was sustained and the Revenue appeal was rejected.

Ratio Decidendi: Eligibility to an exemption depending on the number of workers may be determined on the basis of section-wise documentary records, and a factual finding supported by such records will not be disturbed as perverse.

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