1997 (1) TMI 357 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 175/86 for claiming benefits without SSI registration certificate.

Detailed Analysis:
The case involved three appeals filed by the Department against the Order-in-Appeal passed by the Collector of Central Excise (Appeals), New Delhi. The Department contended that the appellants, engaged in manufacturing P & P Medicines, were not entitled to the benefits of Notification No. 175/86 as they did not possess a Small Scale Industries (SSI) registration certificate for their unit at Delhi. The Collector (Appeals) allowed the benefit subject to verification, citing that the case fell under para 4(b) of the said notification. The Department argued that the benefit could not be extended without the SSI certificate, even if the manufacturer had shifted locations. The respondents claimed entitlement to the benefit due to their previous unit at Jallandhar and argued that they were covered under para 4(b) of the notification.

The learned Counsel for the respondents highlighted that para 4 of the notification catered to various situations, including units registered with authorities, units not registered with the Directorate General of Technical Development (DGTD), and units not exceeding prescribed limits. It was emphasized that the focus was on the manufacturer of specified goods rather than the factory's location. The Counsel cited several Tribunal orders to support their argument, demonstrating similar cases where benefits were allowed despite the absence of SSI registration certificates.

Upon review, the Tribunal observed that the Collector (Appeals) had correctly interpreted para 4(b) of the notification, focusing on the term 'manufacturer.' The Tribunal noted the distinction in emphasis between different paragraphs of the notification regarding factories and manufacturers. It was undisputed that the respondents lacked an SSI registration certificate for their Delhi unit, but all other conditions of the notification were met. Referring to the precedent set by the case of Accura Industries, where benefits were granted despite the absence of an SSI certificate for a new factory location, the Tribunal upheld the Collector (Appeals) decision. The Tribunal rejected all three Department appeals, affirming the Collector (Appeals) order in favor of the respondents.