Small-scale industry exemption lapses after amalgamation; RT-12 assessments and notice to another unit do not bar limitation.

A small-scale industry exemption was treated as attaching to the manufacturer, not merely the factory premises, so it did not survive amalgamation when the manufacturer's identity changed. The continued concessional clearances after amalgamation were therefore held ineligible. On limitation, RT-12 assessments and intimation of amalgamation did not establish departmental knowledge of ineligibility, and an earlier notice issued to a different licensed unit in another jurisdiction did not bar the demand. The demand was therefore not time-barred, and the appeal could not succeed.

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Issues: (i) Whether the small-scale industry exemption under the notification continued to be available after amalgamation of the original manufacturer with another entity. (ii) Whether the demand was barred by limitation on the ground of departmental knowledge from RT-12 assessments, intimation of amalgamation, or an earlier show cause notice issued to another unit.

Issue (i): Whether the small-scale industry exemption under the notification continued to be available after amalgamation of the original manufacturer with another entity.

Analysis: The exemption was held to attach to the manufacturer and not merely to the factory premises. After amalgamation, the identity of the manufacturer changed, and the registration certificate treated the manufacturer as the beneficiary. The factory could not continue to claim the concession merely because it remained in the same premises.

Conclusion: The exemption was not available after amalgamation, and this issue was decided against the assessee.

Issue (ii): Whether the demand was barred by limitation on the ground of departmental knowledge from RT-12 assessments, intimation of amalgamation, or an earlier show cause notice issued to another unit.

Analysis: Filing of RT-12 returns and intimation of amalgamation did not establish departmental knowledge that the assessee had become ineligible for the concession. The earlier notice to a different unit did not amount to knowledge in the present jurisdiction, as the two units were distinct and separately licensed. The assessee's continued concessional clearances were therefore not protected by limitation on the asserted grounds.

Conclusion: The demand was not barred by limitation, and this issue was decided against the assessee.

Final Conclusion: The concessional duty benefit was wrongly availed after amalgamation, and the objection on limitation also failed, so the appeal could not succeed.

Ratio Decidendi: A small-scale industry exemption granted to a manufacturer does not continue merely because the factory premises remain the same after amalgamation, and limitation cannot be defeated by showing RT-12 assessments or notices issued to a different licensed unit in another jurisdiction.

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