Deemed credit for SSI units continued after crossing the clearance limit, as eligibility was tied to Notification No. 1/93 status.

Deemed credit under the Ministry of Finance order remained available to SSI units that crossed the Rs. 75 lakhs clearance limit and later began paying duty at the full rate, because the credit facility was tied to the category of manufacturers eligible under Notification No. 1/93. Crossing the slab did not change the character of the units as SSI units within the same exemption framework for the relevant year, and the credit order was read as identifying eligibility by reference to that notification rather than by the stage at which duty was paid.

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Issues: Whether deemed credit under the Ministry of Finance order continued to be admissible to SSI units after they crossed the Rs. 75 lakhs clearance limit and began paying duty at the full rate.

Analysis: The Tribunal followed its earlier view that the facility of deemed credit was attached to the category of manufacturers eligible under Notification No. 1/93. Crossing the Rs. 75 lakhs slab did not alter the character of the units, which continued to be SSI units operating within the same exemption framework for the relevant year. The wording of the credit order was treated as identifying manufacturers by their eligibility under the notification, not by whether duty was being paid at the slab rate or the full rate at a later stage.

Conclusion: Deemed credit remained admissible to SSI units even after crossing the Rs. 75 lakhs limit and starting to pay duty at the full rate.

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