SSI exemption and lease arrangements required fresh scrutiny of certificate validity and competent authority views before relief could stand.

Eligibility for exemption under Notification No. 175/86 depended on whether the small scale industry certificate remained valid when the factory, originally certificated in the lessor's name, was leased to another manufacturer. The lower appellate authority allowed the exemption without obtaining clarification from the issuing authority or examining the governing rules and certificate conditions. The impugned orders were set aside and the matter was remanded for de novo adjudication after hearing the parties and obtaining the views of the competent SSI authorities.

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Issues: Whether the benefit of Notification No. 175/86 could be denied on the ground that the small scale industry certificate stood in the name of the lessor and the factory had been leased to another manufacturer, and whether the validity of the certificate in such circumstances required reconsideration.

Analysis: The dispute turned on the validity and continued operation of the SSI certificate after the factory was leased, particularly in the light of the certificate conditions and the view of the competent authority that issued it. The lower appellate authority had allowed the exemption without obtaining authoritative clarification from the issuing authority or examining the statutory rules and orders governing SSI certificates. The matter therefore required reconsideration on the factual and legal position relating to the certificate and the lease arrangement.

Outcome: The impugned orders were set aside and the matter was remanded to the original authority for de novo adjudication after hearing the parties and obtaining the views of the competent SSI authorities.

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