Small scale industry exemption cannot be denied for lack of product-wise endorsement in the registration certificate

A small scale industrial unit need not have each manufactured product separately endorsed in its registration certificate to claim exemption under Notification No. 175/86-C.E. Where the factory is registered as a small scale industry and a later endorsement relates back to an earlier date, the absence of an initial product-wise endorsement does not, by itself, justify denial of the exemption. The stated position is that registration as a small scale industry is sufficient for the exemption claim, and washers could not be excluded merely because they were not originally named in the certificate.

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Issues: Whether a small scale industrial unit was required to have each manufactured product separately endorsed in its registration certificate to claim exemption under Notification No. 175/86-C.E.

Analysis: The unit was registered as a small scale industry with the Directorate of Industries, and the later endorsement adding washers related back to an earlier date. The Board's circular clarified that once a factory is registered as a small scale industry, it is not necessary for every product manufactured by it to be separately endorsed in the registration certificate for availing the exemption. The absence of an initial product-wise endorsement, by itself, did not justify denial of the exemption.

Conclusion: The exemption could not be denied on the ground that washers were not originally mentioned in the registration certificate, and the assessee was entitled to the small scale industry exemption.

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