Small scale exemption eligibility must be tested under the notification itself, not imported under the Industries Act provisions.

Eligibility for the small scale industry exemption under Notification No. 1/93-C.E. had to be determined on the basis of the notification itself, with the aggregate value of clearances from the assessee's two factories being the decisive factor. Provisions of the Industries (Development and Regulation) Act, 1951 could not be imported to test eligibility under the exemption notification. On that basis, no surviving ground remained to deny concessional treatment, and the extension of the exemption to the assessee was upheld.

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Issues: Whether the benefit of Notification No. 1/93-C.E. dated 28-2-1993 was available to the assessee, and whether provisions of the Industries (Development and Regulation) Act, 1951 could be imported to determine eligibility under the small scale industry notification.

Analysis: The decisive consideration was the aggregate value of clearances from the two factories of the assessee for the purpose of the small scale exemption. The eligibility under the notification had to be determined on the basis of the notification itself, and not by importing the valuation or control provisions of the Industries (Development and Regulation) Act, 1951. Since no other ground survived for denying the concessional treatment, the order allowing the exemption was sustainable.

Conclusion: The benefit of the small scale industry notification was correctly extended to the assessee, and the Revenue's challenge failed.

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