SSI exemption after leasing depends on whether the original certificate remains valid for the changed unit constitution

A small scale industry exemption under Notification No. 175/86 depended on whether an SSI certificate issued to one unit continued to remain valid after the unit was leased to another person. The certificate endorsement limited validity to the factory location, products and constitution of the unit as originally allotted, so its continuation after leasing required clarification from the issuing State authority. The matter was therefore not finally resolved on the existing record and was remanded for reconsideration after obtaining that clarification.

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Issues: Whether a small scale industry exemption could continue to be availed on the basis of an SSI certificate earlier issued to a unit that was subsequently leased to another person for the purpose of Notification No. 175/86.

Analysis: The certificate contained an endorsement that registration was valid for the factory location, products and constitution of the unit at the time of allotment. The question whether such a certificate continued to remain valid after the unit was taken on lease was treated as requiring clarification from the authority that had issued the certificate. In view of the earlier decisions following the same approach, the matter was not finally decided on the existing record and was sent back for reconsideration after obtaining the State authority's clarification.

Conclusion: The exemption entitlement was not finally affirmed, and the matter was remanded for clarification on the status of the SSI certificate after leasing.

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