SSI exemption cannot be denied solely for lack of permanent registration when provisional registration and proviso conditions are satisfied.

SSI exemption under Notification No. 175/86-C.E. was available despite the absence of permanent registration during the relevant period, because the unit had obtained provisional registration and later secured permanent registration. The denial of exemption solely on the ground that permanent registration had not been issued at the relevant time was not sustained. The notification's proviso also provided that the registration requirement would not apply where the assessee had already availed the notification in the previous year, and that condition was satisfied. On that basis, the appellant was held entitled to the SSI exemption for the period in question.

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Issues: Whether the appellant was entitled to the benefit of SSI Exemption Notification No. 175/86-C.E. despite absence of permanent registration during the relevant period.

Analysis: The unit had obtained provisional registration and later secured permanent registration. The denial of exemption solely because permanent registration had not been issued during the relevant period was not upheld. The notification contained a proviso that the registration requirement would not apply if the assessee had already availed of the benefit of the notification in the previous year, and that condition was satisfied.

Conclusion: The appellant was entitled to the SSI exemption for the period in question, and the denial of the benefit was incorrect.

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