Legal Question in Business Law in India

Re: shifting of manufacturing unit

Notification no. 50/2003-CE is an area based exemption notification which exempts goods manufactured and cleared from a unit located in the Industrial Growth Center or Industrial Infrastructure Development Center or Export Promotion Industrial Park or Industrial Estate or Industrial Area or Commercial Estate or Scheme Area (as specified in the notification). Clause 2(a) to the notification provides that this exemption will apply to the new industrial units set up in the areas mentioned and which have commenced commercial production on or after the 7th day of January, 2003, but not later than the 31st day of March, 2010. Further clause 3 which is a sun set clause provides that exemption will apply to any of the said units for a period not exceeding ten years from the date of publication of this notification in the Official Gazette (i.e. 10th June, 2003) or from the date of commencement of commercial production, whichever is later. It is a settled principle of law that exemption notification should be construed strictly, thus, if unit is moving to the mentioned areas, as per our understanding exemption benefits needs to be extended to the new unit. However it is advisable to take proper permission and approval from the Central Excise Commissionerate.

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Re: shifting of manufacturing unit

Hello.

Good Afternoon!

You should intimate the Tax Department in writing.

Re: shifting of manufacturing unit

You may consider approaching the tax department with your question and keep a record of the written reply you receive.