1994 (6) TMI 86 - AT - Central Excise

Summary

Issues:
1. Eligibility for small scale industry exemption based on the product mentioned in the Registration Certificate.
2. Interpretation of Notification No. 175/86 regarding small scale industry exemption.
3. Applicability of exemption notification without reference to registration with the Directorate of Industry.
4. Time-barred nature of the notice for clearances during a specific period.

Analysis:

1. The appeal was filed by M/s. Manko Industries against the order denying them the benefit of small scale industry exemption for washers manufactured and cleared by them. The Collector of Central Excise (Appeals) upheld the denial based on the ground that the Registration Certificate issued to them only mentioned G.M. Bushes, not washers. The Assistant Collector's order was affirmed, stating that the exemption required both the unit and the product to be indicated in the SSI Certificate. The benefit was held inapplicable for washers manufactured before 14-6-1993 when their registration for washers was obtained.

2. In the appeal, the appellants argued that the Notification only necessitated the registration of the Unit as a Small Scale Unit, not specifying the product in the SSI Certificate. They cited a decision from Collector of Central Excise (Appeals), Trichy, and a Tribunal decision in support. They contended that their Registration Certificate was amended to include washers with retrospective effect from June 1986, making them eligible for the exemption. They also raised concerns about the applicability of the exemption without reference to Directorate of Industry registration and the time-barred notice for specific clearances.

3. The Tribunal considered the submissions and reviewed the record. They referred to a Circular by the Central Board of Excise and Customs, stating that once a factory is registered as a small scale industry, it is not necessary for each product to be endorsed in the registration certificate to avail SSI exemption for all manufactured items. The Tribunal found that the Registration Certificate's endorsement of washers with retroactive effect covered all products manufactured by M/s. Manko Industries. They concluded that manufacturing unmentioned items did not disqualify them from the small scale industry exemption. Consequently, the appeal was allowed based on their eligibility for the exemption.

4. The Tribunal accepted the arguments presented by the appellants' consultant, Shri Chopra, regarding the small scale exemption eligibility. The appeal was allowed, and the decision was announced in court at the conclusion of the hearing. The Tribunal's decision was based on the clarification provided in the Circular and the interpretation of the Notification's requirements for small scale industry exemption.