1995 (11) TMI 145 - AT - Central Excise

Summary

Issues:
Interpretation of exemption Notification No. 175/86 for SSI units based on the date of application for SSI Certificate and its issuance.

Analysis:
The case involved a dispute regarding the applicability of exemption Notification No. 175/86 to the appellants, who applied for an SSI Certificate on 26-2-1986. The main contention was whether the benefit of the notification should be extended from 1-3-1986, the date of the notification, or from the date of issuance of the SSI Certificate on 18-10-1986. The appellants argued that since they applied before the notification came into force, they should be considered an SSI unit from 1-3-1986. They relied on legal precedents emphasizing a sympathetic interpretation of taxing statutes to benefit citizens and a Press Note by the Government clarifying the status of DGTD units as small scale units if the investment was below a certain threshold.

The respondent, however, contended that the crucial date for determining the applicability of the exemption was the issuance of the SSI Certificate, not the application date. The SSI Certificate issued on 18-10-1986 did not mention any retrospective effect, leading to the conclusion that the benefit under the notification could not be extended from 1-3-1986. The respondent cited legal judgments supporting this interpretation of statutes to strengthen their argument.

Upon considering the arguments and reviewing the facts, the Tribunal held that the benefit of Notification No. 175/86 could only be availed by the appellants from 18-10-1986, the date of issuance of the SSI Certificate. The Tribunal noted that the appellants were already a registered DGTD Unit, and their status changed upon receiving the SSI Certificate, not from the date of application. Since the certificate did not specify any retrospective effect, the benefit under the notification could not be applied from 1-3-1986. Consequently, the Tribunal upheld the impugned order, rejecting the appeal in favor of the respondent.