SSI exemption can be claimed unit-wise when conditions are met, even if another factory follows a different duty regime.

The SSI exemption under Notification No. 1/93-C.E. was available for one manufacturing unit even though the assessee did not claim the same exemption in another unit. The reference to a manufacturer having one or more factories governs computation of aggregate clearances and does not, by itself, bar unit-wise exemption where the notification's conditions are otherwise satisfied. The Tribunal's prior view was followed that availing credit or paying duty in one unit does not automatically disqualify a different unit from SSI exemption.

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Issues: Whether small-scale industry exemption under Notification No. 1/93-C.E. could be availed in one manufacturing unit while the assessee did not avail the same exemption in its other unit.

Analysis: The Notification permits computation of value of clearances with reference to a manufacturer having one or more factories, but that wording does not bar an assessee from taking the exemption in one unit while not availing it in another unit. The issue had already been settled by the Tribunal in an earlier decision holding that availing credit or paying duty in one unit does not by itself make the assessee ineligible for exemption in another unit, provided the conditions of the notification are satisfied.

Conclusion: The assessee was entitled to avail the SSI exemption in the Faridabad unit despite not availing the exemption in the Hyderabad unit.

Ratio Decidendi: The expression relating to a manufacturer having one or more factories is relevant to computation of clearances and does not prohibit exemption in one unit merely because another unit follows a different duty or credit regime.

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