Small scale exemption cannot be denied for factory relocation or absence of excise licence if substantive conditions are met.

Exemption under Notification No. 175/86-C.E. was linked to the manufacturer's eligibility as a small scale industry, not to the particular factory address. Shifting the factory to new premises did not defeat the benefit where correction of registration particulars was applied for and later incorporated by the competent authority. Absence of a Central Excise licence also did not by itself disqualify the assessee, because the notification did not make such a licence a condition for exemption, though separate action under the excise law could still follow. The exemption remained available and denial of benefit was unjustified.

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Issues: Whether the assessee was entitled to exemption under Notification No. 175/86-C.E. after shifting its factory to a new premises while the registration certificate continued to show the old address, and whether absence of a Central Excise licence disentitled it to the exemption.

Analysis: The exemption notification was intended for a small scale industry and did not make holding of a Central Excise licence a condition for availing the benefit. Any default in obtaining such licence could attract action under the relevant law, but it did not by itself affect eligibility under the notification. The benefit of the notification attached to the manufacturer and not to a particular address. Since the assessee had applied for correction of the registration particulars and the change of address was subsequently incorporated by the competent authority, the shifting of the factory did not defeat the exemption claim.

Conclusion: The assessee remained entitled to the exemption and the denial of benefit was unjustified.

Ratio Decidendi: Exemption under Notification No. 175/86-C.E. cannot be denied merely because the factory shifted premises or because a Central Excise licence was not obtained, so long as the statutory conditions for small scale exemption are otherwise satisfied and the registration particulars are duly corrected.

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