SSI exemption fails where registration is cancelled and not validly renewed or amended after amalgamation.

Exemption under Notification No. 175/86-C.E. was confined to units satisfying the prescribed small-scale industry conditions, so cancellation of SSI registration and failure to secure a valid renewal or amendment defeated the claim after amalgamation. A pending request for amendment did not suffice, because the notification condition was substantive rather than a mere formality. The record also did not show that the amalgamated unit independently met the small-scale requirements. The exemption was therefore unavailable, the duty demand was confirmed, and the Department's appeal succeeded with the order of the Collector (Appeals) set aside.

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Issues: Whether the respondent remained entitled to the benefit of Notification No. 175/86-C.E. dated 1-3-1986 after cancellation and non-amendment of its SSI registration following amalgamation.

Analysis: The exemption under the notification was available only to units satisfying the prescribed SSI conditions. After the SSI registration had been cancelled and was neither renewed nor amended, the respondent could not claim the benefit merely on the basis of the earlier registration or the pending request for amendment. The record also did not show that the new amalgamated unit independently satisfied the small scale requirements. The renewal or amendment was not a mere formality because the notification condition was substantive.

Conclusion: The respondent was not entitled to the exemption, and the duty demand was rightly confirmed.

Final Conclusion: The Department's appeal succeeded and the order of the Collector (Appeals) was set aside.

Ratio Decidendi: Where exemption is confined to SSI units, cancellation or absence of valid renewal or amendment of SSI registration defeats the claim unless the assessee independently satisfies the notification conditions.

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