Clubbing of factory clearances for exemption eligibility upheld as a valid method under the notification scheme.

A challenge under Article 19(1)(g) attacked clause 3 of Notification No. 175/86, as amended, which permitted clubbing of clearances from more than one factory for exemption eligibility. The court treated the issue as a validity challenge to the exemption scheme itself, distinguished authorities based on different notifications or factual settings, and noted that an earlier rejection of the same contention had already been recorded. On that basis, it regarded the clubbing method in clause 3 as legally sustainable and upheld the notification.

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Issues: Whether clause 3 of Notification No. 175/86, as amended by Notification No. 216/86 dated 2-4-1986, permitting clubbing of clearances from more than one factory for the purpose of exemption, was unconstitutional or otherwise invalid under Article 19(1)(g) of the Constitution of India.

Analysis: The challenge was confined to the validity of the exemption scheme under which clearances from a factory could be aggregated for determining eligibility. The Court noted that the same contention had already been rejected in an earlier order and found that the cited Division Bench decision did not address the present challenge to the validity of the notification. The other authorities relied upon were distinguished as turning on different notifications or on their own factual evidence, rather than on the legal issue of the validity of clubbing clearances under the impugned clause. Since the petition sought only to restrain application of the clause and not relief on any specific factual grievance, the Court held that the method adopted by clause 3 was valid.

Conclusion: The challenge to the clubbing provision failed and the impugned notification was upheld as valid.

Final Conclusion: The writ petition was rejected because the exemption notification permitting clubbing of clearances from more than one factory was held to be legally sustainable.

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