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TMI Blog2001 (10) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellants manufacture paints and varnishes and avail of the benefit of small- scale exemption; that they hold permanent Registration Certificate as a small-scale industry issued by the General Manager, District Industries Centre, UP; that a show cause notice dated 28-2-95 was issued to them for denying the benefit of Notification No. 175/86 on the ground that in terms of Notification No. SO-232 (E), dated 2-4-91 issued under Section 11B of the Industries (Development and Regulation) Act, the appellant-company would come under the category of being "subsidiary to any other undertaking;" that both the factories namely, Surcoat and Singhal are to be considered as owned by the same owner; that the Commissioner, under the impugned order confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the competent authority is valid and alive. He relied upon the decision in the case of CCE v. Agra Leather Goods Pvt. Ltd. [2000 (39) RLT 674 (T)] wherein the Tribunal held as under : "The main condition required for availing the benefit of exemption Notification No. 175/86-C.E., dated 1-3-86 is that the unit must hold SSI registration certificate either from the State Directorate of Industries or the Development Commissioner of the Industries. The respondents admittedly possessed SSI registration certificate No. 20/01/08849/PMT/SSI/01, dated 21-7-64 issued by the Directorate of Industries, Government of Uttar Pradesh during the period in question. True that the norm for determination of SSI status of the unit is normally the extent of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ality Plastics P. Ltd. v. CCE [1999 (35) RLT 339] (2) CCE v. Dhar Cements [2000 (121) E.L.T. 720 (T)] (3) M/s. Ginni International Ltd. v. CCE, Jaipur Final Order No. 190/2001-D, dated 28-9-2001 [2002 (139) E.L.T. 172 (T)]. 4. He also contended that in the context of the very notification issued under the IDR Act, the Tribunal in K.E. Burgmann Fibre India Pvt. Ltd. v. CCE, Calcutta [1997 (21) RLT 305 (CEGAT)], has held that the said notification cannot be imposed into the small-scale excise notification and the exemption cannot be denied on that ground. He added that further Mr. Singhal who controls the unit is not an Industrial Undertaking. Finally, he submitted that in any case, in view of Para 4(b) of Notification No. 175/8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.E. prescribed the condition for availment of exemption contained in the notification as under : "4. The exemption contained. In this notification shall be applicable only to a factory which is any undertaking registered with the Director of Industries in any State or the Development Commissioner (Small Scale Industries) as a small-scale industry under the provisions of the Industries (Development and Regulation) Act, 1951 (65 of 1951) : Provided that nothing contained in this paragraph shall be applicable, - (a) In a case where the value of clearances from a factory during the proceedings financial year or in the current financial year did not exceed or is not likely to exceed rupees seven and a half lakhs; or (b) In a case wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of which the benefit of the small-scale notification is being denied was issued in April 1991. If the department's contention that after issue of the said notification under the IDR Act, the appellants ceased to be small-scale industry, the registration certificate issued to them should have been withdrawn by the competent authority or at least steps should have been initiated to withdraw the registration certificate. Once the appellants satisfied the condition of being registered as small-scale industries, the benefit of Notification No. 175/86 or 1/93 cannot be denied to them. This was the view of the Tribunal in the case of Agra Leather Goods Pvt. Ltd. relied upon by the ld. Advocate. The Tribunal also took the similar view in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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