Small scale exemption requires valid industrial registration during the relevant period; expired provisional registration defeated the claim.

Small scale exemption under Notification No. 175/86-CE depended on valid small scale industrial registration during the relevant period. As the provisional registration had expired, the application for permanent registration was filed later, and no permanent certificate had been issued even after a long delay, the exemption condition was not met. The argument that a later certificate would relate back to the date of application was rejected as inapplicable because no certificate existed during the period in dispute. The appellant was therefore not entitled to the exemption for that period.

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Issues: Whether the appellant was entitled to the small scale exemption benefit under Notification No. 175/86-CE for the relevant period when no permanent registration certificate had been issued and the provisional certificate had expired.

Analysis: The exemption was conditional upon possession of valid small scale industrial registration. The provisional certificate had expired before the period in dispute, the application for permanent registration was made later, and no permanent certificate had been issued even after a long lapse of time. In these circumstances, the appellant did not satisfy the notification's condition during the relevant period. The contention that a subsequently issued certificate would relate back to the date of application was held to be inapplicable because no certificate was in existence.

Conclusion: The appellant was not entitled to the exemption under Notification No. 175/86-CE for the period in question.

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