SSI exemption cannot be denied for failure to file a separate declaration when the substantive exemption conditions are otherwise met.

SSI exemption under Notification No. 175/86-CE could not be denied merely because the declaration required under Notification No. 13/92-CE (NT) was not filed. That declaration was relevant to exemption from Central Excise registration and was not a condition for SSI exemption under Notification No. 175/86-CE or Notification No. 1/93-CE. The omission was only procedural and could not defeat a substantive exemption where turnover remained within the exemption limit. The SSI exemption was therefore held to be available to the assessee.

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Issues: Whether SSI exemption under Notification No. 175/86-CE could be denied merely because the declaration required under Notification No. 13/92-CE (NT) was not filed.

Analysis: The declaration under Notification No. 13/92-CE (NT) was required for availing exemption from Central Excise registration. That notification did not impose a condition for availing SSI exemption under Notification No. 175/86-CE or Notification No. 1/93-CE. The omission to file the declaration was therefore only procedural and could not defeat a substantive exemption, particularly when the turnover for the relevant years was within the exemption limit.

Conclusion: The denial of SSI exemption was unsustainable and the exemption was available to the assessee.

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