Small scale exemption depends on valid industrial registration, not item-wise endorsement of every manufactured product.

A small scale industrial unit could claim Notification No. 175/86-C.E. where it held valid registration with the Directorate of Industries, even though every manufactured product was not originally item-wise endorsed in the registration certificate. The later inclusion of the additional products in the certificate supported the claim, and the Tribunal's view was applied that separate endorsement of each product is not mandatory unless the exemption notification expressly requires it. The Revenue's objection based solely on the absence of item-wise endorsement was rejected, and the small scale exemption remained available.

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Issues: Whether a small scale industrial unit was entitled to the benefit of Notification No. 175/86-C.E. when all the items manufactured by it were not originally endorsed in the registration certificate issued by the Directorate of Industries.

Analysis: The exemption notification required the factory claiming the benefit to be registered with the Directorate of Industries. The respondents held such registration, and the record showed that the additional products were subsequently included in the certificate. The earlier Tribunal view that each and every product need not be separately endorsed in the registration certificate to claim the exemption was applied.

Conclusion: The assessee was entitled to the benefit of the small scale exemption, and the Revenue's objection based on the absence of item-wise endorsement in the registration certificate was rejected.

Ratio Decidendi: For claiming small scale industry exemption, a valid registration as a small scale unit is sufficient and item-wise endorsement of every manufactured product in the registration certificate is not mandatory unless the notification expressly so requires.

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