1998 (12) TMI 147 - AT - Central Excise

Summary

Issues:
Availability of benefit of Notification No. 175/86 to factory with unmentioned address in SSI Registration Certificate.

Detailed Analysis:

Issue 1: Availability of benefit of Notification No. 175/86
The case involved appeals by M/s. Flexible Packaging Company regarding the availability of the benefit of Notification No. 175/86 to their factory, where the address was not mentioned in the SSI Registration Certificate. The Directorate of Industries issued a Registration Certificate showing only Gala No. 129, while excisable goods were also manufactured at Gala No. 128. The dispute arose when duty demands were made, alleging that the factory was not a SSI Unit as per the registration certificate. The Adjudication orders confirmed the duty demands, stating that the factory at Gala No. 128 was not registered as a small scale unit. The Collector (Appeals) upheld these orders, emphasizing that the benefit of the notification would not be available if the factory was not registered with the appropriate authority.

Issue 2: Interpretation of Notification No. 175/86
The appellants argued that they were eligible for the exemption under Notification No. 175/86 as the value of clearances did not exceed the specified limit. They contended that the change of factory address should not disentitle them from claiming the exemption. They cited legal precedents such as C.C.E. v. S.K. Engg. and Trading Company, Syn Pack (P) Ltd. v. C.C.E., and C.C.E. v. Peripheral India to support their stance that procedural infractions should not lead to the denial of substantial benefits under the notification.

Issue 3: Tribunal's Decision
The Appellate Tribunal considered the submissions of both parties and noted that the appellants were registered as a small scale unit in respect of Gala No. 129 and had a license for both Gala Nos. 128 and 129. The Tribunal referenced the case of Syn Pack (P) Limited v. C.C.E. and C.C.E. v. Peripheral India, where it was held that procedural issues like a change in factory address should not automatically disentitle the assessee from exemption benefits. Therefore, the Tribunal allowed both appeals, setting aside the impugned orders and granting the benefit of Notification No. 175/86 to the appellants.

In conclusion, the Tribunal ruled in favor of M/s. Flexible Packaging Company, emphasizing that the mere absence of Gala No. 128 in the SSI Registration Certificate should not deprive them of the exemption under Notification No. 175/86, especially when they were registered as a small scale unit and had fulfilled the eligibility criteria.