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2023 (12) TMI 563 - AT - Central ExciseArea Based exemption - new unit in the state of Himachal Pradesh - late filing of declaration - exemption under N/N. 50/2003-CE dated 10.06.2003 denied on the ground that the appellant had filed the declaration for availing the exemption on 22.03.2010 whereas exemption was claimed with effect from 20.06.2009 - period of 20.06.2009 to 21.03.2010 - HELD THAT:- The appellant vide his letter dated 25.08.2012 informed the Commissioner of Central Excise, Chandigarh that if the department has got any doubt regarding the genuineness of the declaration then the same can be verified from the relevant post office and the complete address of the post office was also supplied to the officer. But the department did not make any effort to verify the same and simply ignored the request of the appellant and has denied the exemption for the relevant period only on the ground of non receipt of declaration. Further, it is found that subsequently, the appellant filed declaration on 23.03.2010 under the belief that every year declaration is required to be filed. This issue of non filing/late filing of declaration to avail exemption under Notification No. 50/2003-CE dated 10.06.2003 has come up before this Tribunal in the case of Controls and Switchgears company Ltd. Vs. Commissioner of Central excise Meerut and Vice-versa [2017 (4) TMI 847 - CESTAT NEW DELHI] wherein also the exemption was denied to the assessee on the ground that assessee did not file the option for claiming benefit of exemption notification. It was held by the Tribunal that intimation to the department about the option for claiming benefit of exemption appears to be only a procedural requirement, and a liberal attitude, therefore as to be taken in this regard when the assessee otherwise is entitled to the benefit of exemption notification with effect from the date when the department was informed by the assessee on their claim of benefit of the notification. Further, in the case of Vasantham Enterprises Vs. Commissioenr of C. Ex. Chandigarh [2014 (12) TMI 953 - CESTAT NEW DELHI] it was held by the Tribunal that it is a settled law that though exemption notification generally should be strictly interpreted but beneficial exemption for encouragement or promotion of certain activities should be liberally interpreted once eligibility criteria is satisfied. We find that in the present case the appellant is entitled to area based exemption being located in specified area, and incomplete declaration does not totally debar him from eligibility to above exemption otherwise it would defeat the object of area based exemption. The denial of benefit of notification 50/2003-CE dated 10.06.2003 for the period from 20.06.2009 to 21.03.2010 is not sustainable in law - Appeal allowed.
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