1989 (6) TMI 225

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....rion laid down in proviso 4(b) of the said Notification. After the amendment of this notification by Notification 244/87 the eligibility criterion under proviso 4(b) was modified and as per the new eligibility criterion the appellants no longer fall within the purview of proviso 4(b) of the said notification. The said proviso after the amending notification for the purpose of eligibility to the benefit of notification is reproduced : "4. The exemption contained in this notification shall be applicable only to a factory which is an undertaking registered with the Director of Industries in any State or the Development Commissioner (Small Scale Industries) as a small scale industry under the provisions of the Industries (Development and Reg....

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....khs they were eligible to the said notification. The lower authorities held that inasmuch as their clearance in the current financial year had exceeded Rs. 7.5 lakhs they were not eligible for the benefit. The short point that arises for consideration in the present appeal is whether their eligibility to the exemption has to be determined with reference to the past clearances in the preceding financial year or their clearances made in the current financial year are also to be taken into account for the purpose and if in either case the clearances do not exceed Rs. 7.5 lakhs whether they would become ineligible for the concession. Admittedly they were not registered with the Director of Small Scale Industries of the State or the Development ....

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.... Small Scale Unit by virtue of the conditions prescribed under para 4 i.e. by virtue of registration done with the authorities mentioned therein. However, where the Unit is not registered, same is deemed to be a Small Scale Unit for the purpose of the Notification subject to the fulfilment of the conditions set out in the proviso 4(a) & 4(b). The appellants are claiming the benefit under proviso 4(a). This provides for two contingencies, i.e. either the Unit should not have cleared goods for more than Rs. 7.5 lakhs in the preceding financial year or their clearances are not likely to exceed Rs. 7.5 lakhs in the current financial year. Admittedly, the appellants' clearances in the current financial year had already exceeded Rs. 7.5 lakhs and....