TaxTMI 
TaxTMI 
1997 (5) TMI 175
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....otification was applicable only to a 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 Regulation) Act, 1951 (65 of 1951). It is an admitted position that the appellants were not an undertaking registered with the Director of Industries or the Development Commissioner. It was further provided in para 4 of the said Notification No. 175/86-C.E. that the registration with the Director of Industries or the Development Commissioner was not necessary where the value of clearances from a factory during the preceding financial year did not exceed Rs. seven and a half lakhs. There is no dispute ....
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....order dated 6-7-1988. The appellants had obtained small scale registration from 15-1-1987. The order of the Asstt. Collector of Central Excise was confirmed by the Collector of Central Excise (Appeals), New Delhi. 3. We have heard Shri J.S. Agarwal, Advocate for the appellants and Shri M. Jayaraman, JDR for respondent/Revenue. 4. The ld. Advocate stated that the appellants during the relevant time had no SSI registration and it is also not disputed that during the financial year 1985-86 their value of clearances had exceeded Rs. 7.5 lakhs. It was his submission that as during the year 1986-87 their value of clearances did not exceed Rs. 7.5 lakhs, they were eligible for the small scale exemption even when during the year 198....
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....t situation covered by the Proviso and thus, the case law cited by the appellants' Counsel is not applicable to the facts. He further mentioned that once the first condition was not fulfilled then it was not required to go through the clearances from the current financial year. 6. We have carefully considered the matter. Para-4 in so far it is relevant to the present proceedings is extracted below : PARA-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 Regulation) Act, 1951....
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.... Rs. 7.5 lakhs and therefore, they were eligible for small scale exemption even when they were not an undertaking registered with the Director of Industries or the Development Commissioner. The relevant provisions have already been extracted above. 9. The ld. JDR had submitted that once the first condition about the value of clearances during the preceding financial year was not satisfied, it was not current financial year and that the exemption notification has to be interpreted and applied for the clearances during the current financial year on the basis of the performance during the preceding financial year . We find that if the interpretation as convassed by the appellants is accepted then irrespective of the value of clearances....
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....heir entitlement to exemption during the subsequent year i.e. 1987-88 as far as their SSI registration certificate is concerned. The impugned order is correct in law as also on facts. I find no merits in the appeal. In the result, the appeal is rejected." 11. The appellate authority had taken a view that as the appellants' clearances during 1985-86 had exceeded Rs. 7.5 lakhs in the absence of a SSI Certificate they were not eligible for exemption during 1986-87. The present proceedings are for the period April, 1986 to November, 1986 and the appellants had obtained SSI Certificate from 15-1-1987. 12. The ld. Advocate had submitted that the Department had interpreted the expression in the provisions "or" as "and" that both th....