ORDER 1. This appeal has been filed against an order dated 15.2.2005 passed by the Deputy Excise & Taxation Commissioner (NZ)-cum-first Appellant Authority Palampur. Brief facts of the case are that the Assessing authority, Damtal created an additional demand of Rs.24,372/- Rs. 39,007/-, Rs. 56,461/- and Rs.49,189/- for the years 1999-2000,. 2000-01, 2001-02 and 2002-03 respectively against the appellant. The appellant filed 4 appeals against the same before the Id. First Appellant Authority on the grounds that as per a Government notification No. FXN-1(a) 2/99- dated 23.7.1999 the appellant firm was exempt from the payment of sales tax and this fact has been completely ignored by the Assessing Authority The Id. First Appellate Authority dismissed the appeals holding that neither the unit is fully financed by the KVIC or KVIB nor the appellant has produced any evidence to this effect. Hence, he is liable to pay tax @ 25%. 2. The present appeal has been filed on the grounds that the appellant firm is a KVIC unit and exempt from payment of tax for 8 years and this fact was ignored by the Assessing Authority. 3. The record of the ease has been seen and counsel for the parties heard. The counsel for the appellant argued that since this unit was a fully financed one it was not liable to pay any tax to the Government keeping in view its status as per Government notification of 1999. On the other hand AETC (Legal) appearing for the State argued that the unit was not a fully financed one since it had been funded under the margin money scheme of the KVIC. 4. In the course of arguments the counsel for the appellant firm produced a copy of letter No. HPSO/DIRECTOR CELL/2005-06/1449, dated 26.9.2005 issued by the state office of the Commissioner for Khadi and village Industries, wherein it has been clarified that units funded under the margin money scheme are to be treated as wholly financed units. In view of this clarificatory order, it is clear that M/s Shiva Udyog was not liable for tax for the years 1999-2000 onwards and the orders of the Assessing Authority dated 11.6.2004 and the first Appellant Authority dated 15.2.2005 in this regard are set aside. 5. Announced in the open court today on 2.11.2006.The file may be consigned to the record room after due completion.