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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2001 (8) TMI AT This

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2001 (8) TMI 688 - AT - Central Excise

Issues:
Eligibility of goods for exemption under Notification 1/93 based on registration with DGTD.

Analysis:
The appeal before the Tribunal concerns the eligibility of goods cleared between 1-4-1993 to 31-8-1993 for the benefit of exemption under Notification 1/93. The appellant's factory was denied the benefit by the Assistant Commissioner and confirmed by the Commissioner (Appeals) on the grounds of being registered with the Directorate General of Technical Development (DGTD). The notification grants exemption to factories registered as Small Scale Industries under the Industries (Development and Regulation) Act, 1951, and extends it to factories not registered with DGTD. The appellant argued that its factory was not required to be registered with DGTD during the relevant period, thus the exclusion under sub-clause (b) of the notification should not apply. The Tribunal accepted this contention after considering the submissions made.

The Industrial (Development and Regulation) Act, 1951 mandates registration of existing industrial undertakings with the Central Government. The show cause notice did not allege that the appellant was registered as required by the Act. The Central Government had the power to issue exemptions from registration under Section 29B of the Act, which was exercised through notifications exempting certain industrial undertakings from registration if investment limits were met. The appellant was registered with DGTD in 1973, but a subsequent notification in 1988 exempted small scale industrial undertakings from registration requirements with DGTD. The appellant's investment in plant and machinery qualified it as a Small Scale Industrial Undertaking, as confirmed by certification from a Chartered Accountant. Therefore, any requirement for registration with DGTD ceased to be effective post the new notification. The Tribunal found the department's objection to be untenable as the appellant fell under the category eligible for exemption under the notification.

In conclusion, the Tribunal allowed the appeal and set aside the impugned order denying the benefit of exemption to the appellant during the relevant period.

 

 

 

 

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