Independent exemption provisos require separate factual findings before denying eligibility under a small-scale exemption notification.

An exemption notification with independent alternative provisos requires the adjudicating authority to examine each claimed route to relief on its own facts and record a reasoned finding. Here, the claim under the proviso relating to prior availment of the earlier small-scale exemption was not factually examined, while the rejection focused mainly on turnover under the other proviso. Because the factual basis for eligibility under the alternative route was left unresolved and the prior Tribunal view was not properly distinguished, the adverse order could not stand. The matter was remanded for fresh verification of eligibility and decision in accordance with law after hearing the assessee.

---

---

Issues: Whether the assessee was entitled to the benefit of Notification No. 175/86 on the basis of prior availment of small scale exemption under Notification No. 77/85, notwithstanding the absence of registration as a small scale unit and the turnover position under clause 4(a) of the notification.

Analysis: The two provisos in paragraph 4 of Notification No. 175/86 operate independently. The authority below rejected the claim mainly with reference to clause 4(a) and did not record a factual finding on the assessee's case under clause 4(b), namely whether the assessee had in fact been availing exemption under the earlier notification in the preceding financial year. The prior view of the Tribunal on the scope of clause 4(b) had also not been dealt with by a reasoned distinction. As the factual foundation for applying clause 4(b) was not examined, the issue could not be finally decided on the record.

Conclusion: The matter was remanded to the adjudicating authority to verify the factual claim under clause 4(b) and to decide eligibility in accordance with law after granting a reasonable opportunity of hearing.

Final Conclusion: The assessee obtained a remand for fresh consideration of eligibility to the exemption notification, with the earlier adverse order set aside for want of proper factual and legal examination.

Ratio Decidendi: Where an exemption notification contains independent alternative provisos, the adjudicating authority must examine the factual basis of each claimed route to exemption and record a reasoned finding; failure to do so warrants remand.

---