9911796707
TMI Blog1994 (12) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... the two appeals is whether in the absence of a SSI certificate as required under Notification 175/86, the appellants can avail of the benefit of this Notification in terms of para 4(a) and (b) of the said Notification. The learned Consultant for the appellants pleaded that no doubt under Notification 175/86, for any unit to be eligible for the benefit of the small scale exemption under this notification an SSI certificate is a pre-requisite; but by para 4 of the said notification certain exceptions have been carved out where benefit of the exemption notification could be given even to a unit not covered by the SSI certificate. He referred to the said para which is reproduced below for convenience of reference : 4. The exemption contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st March, 1983 (x)83/83-Central Excises, dated the 1st March, 1985 (xi)77/85-Central Excises, dated the 17th March, 1985 (xii)85/85-Central Excises, dated the 17th March, 1985." The learned Consultant pleaded that so long as the assessees units were covered by either under clause 4(a) or (b), the benefit of the Notification cannot be denied to them. He pleaded that in both the cases during the year 1987-88 the appellants clearances from the respective units were less than Rs. 7.5 lakhs and therefore by virtue of para 4(a) reproduced above, the appellants were eligible for the benefit during that year and the learned lower authority has also extended the benefit to the appellants of Notification 175/86. The claim, he pleaded, was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enied them the benefit of the Notification 175/86 during the year 1988-89 inasmuch as the appellants had been allowed the benefit of Notification 175/86 for the year 1987-88 and once that had been given the appellants fall within the purview of para 4(b) of the Notification 175/86 reproduced above. It was pointed out to the learned Consultant that in case benefit under clause 4(b) as claimed by him is given, then a manufacturer who had been given the concession under an exception in terms of para 4(a) of the notification in one year would never require to produce a SSI certificate as required in terms of the other provision in para 4 of the notification and he can always quote the benefit given in the earlier year to claim the benefit of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificate as redundant. As it is under para 4(a) of the notification, if a manufacturer s clearances during the current year did not exceed Rs. 7.5 lakhs then alone would be eligible for the benefit of this provision of the notification and so long as his clearances remain within the limit of Rs. 7.5 lakhs he will continue to avail the exemption benefit under the exception [para]. The framers of the notification have deliberately provided this limit of Rs. 7.5 lakhs to help such of those manufacturers who are in the tiny sector, so that they do not have to run to the State authorities for getting the SSI certificate. The moment a person goes beyond this limit then the notification makes it clear that the benefit of the exception will not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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