DGTD registration and SSI exemption: Tribunal follows Supreme Court ruling that exemption remained available during the relevant period.

DGTD registration did not bar a unit from claiming the small scale industry exemption under Notification No. 175/86-CE for the relevant period, because the Supreme Court had already settled that such registration did not disentitle the assessee to the benefit. Following that binding position, CESTAT, Chennai held that the exemption remained available despite DGTD registration and that the duty demand was unsustainable.

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Issues: Whether units registered with the DGTD were entitled to the benefit of the small scale industry exemption under Notification No. 175/86-CE dated 1.3.1986 during the relevant period.

Analysis: The exclusion of DGTD-registered units from the notification for the relevant period had already been settled by the Supreme Court. The Tribunal followed that binding decision, which held that registration with DGTD did not disentitle the assessee to the exemption during the disputed period.

Conclusion: The assessee was entitled to the exemption despite DGTD registration, and the demand was unsustainable.

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