2000 (3) TMI 1032 - AT - Central Excise

Summary

Issues:
Challenge to the denial of exemption under Notification No. 175/86 due to change in firm's constitution.

Analysis:
The appeal was filed against an order disallowing the benefit of exemption under Notification No. 175/86. The appellants, engaged in manufacturing gears and shafts, had a partnership firm registered as a small-scale unit. After a change in partners, the firm's name remained the same. The Collector of Central Excise confirmed a duty demand and imposed a penalty, which was challenged by the appellants.

The appellants argued that their SSI unit registration remained valid despite the change in partners as the firm's name was unchanged. The Tribunal noted a similar case where SSI benefit was upheld despite a change in the company's name. In this case, the only change was in the partners, not the firm's name. The Tribunal held that no fresh registration was required after the change in partners, as the exemption Notification did not mandate re-registration due to a change in the firm's constitution.

The Tribunal found the authorities' view, requiring fresh registration for the appellant firm, to be legally incorrect. Consequently, the impugned order was set aside, and the appeal was accepted, granting any consequential relief permissible under the law.