TMI Blog2003 (3) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... 1986 remained pending and the second application made sometime in February/March, 1988 was merely a continuation of the first application, being supplemental in nature, then the respondent would be entitled to the benefit of exemption with effect, from the date of the first application i.e. from 3rd December, 1986. The Tribunal will dispose of the appeal accordingly. - 5831 of 1999 - - - Dated:- 11-3-2003 - S.N. Variava and B.P. Singh, JJ. [Judgment per : B.P. Singh, J.]. - The short question which arises for consideration in this appeal is as to the date from which the respondent is entitled to the benefit of exemption contained in the notification dated March 1, 1986, issued by the Govt. of India in exercise of powers conferred by sub-rule 1 of Rule 8 of the Central Excise Rules, 1944. While the appellant contends that the benefit of exemption can be availed only with effect from the date on which the certificate of registration is issued by the Director of Industries in any State, the respondent contends that the benefit of such exemption must be extended from the date of the application for registration and the respondent should not be deprived of the benefit of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Solicitor General appearing for the appellant commended for our acceptance, the view of the technical member and laid emphasis on the language of the notification particularly paragraph 4 thereof which reads as under : "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 Developmental Commissioner (Small Scale Industries) as a small scale industry under the provisions of the Industries (Development and Regulations) Act, 1951 (65 of 1951)." 6.On the other hand, Dr. Debi Pal, learned Sr. Counsel appearing on behalf of the Respondent contends that paragraph 4 does not prescribe the date with effect from which the certificate becomes effective. He submitted that the certificate issued by the Director of Industries merely recognises the status of an industry as a small scale industry and the right to claim exemption under the notification flows from such status. He has relied upon decisions of this Court in support of his contention which we shall consider hereafter. 7.Paragraph 4 of the notification does not in terms specify the date with effect from which the ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n behalf of the State that the clear intentment of the provision was that the dealer should hold the registration certificate at the time of the purchases and that it would not be sufficient compliance with the statute if the dealer comes to hold it subsequently, the Court observed that it was merely a matter of construction of the language of Section 4B; whether the dealer should hold a registration certificate at the time the purchases were made or whether the requirements of the section should be held to be satisfied if the dealer holds such a "recognition certificate" at the time of the assessment of the turnover in question. This Court approved the view of the High Court that the requirements of the section are substantially complied with if the certificate is available to the dealer at the time the liability to tax of the turnover in question is sought to be determined subject to the requirement that the turnover is after the date of the application filed by the dealer for issue of a certificate. It was further observed : "On a consideration of the matter we are persuaded to the view that the construction placed on the provision by the High Court is an eminently plausible o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld never be the intention of the legislature that a dealer liable to pay tax who has in compliance with the requirements of sub-sections (2) and (3) of section 7, "done all which lay in his power to obtain the registration certificate should pull down his shutters and keep his business closed under pain of being punished under section 23(1) and await indefinitely the pleasure and leisure of the prescribed authority in issuing the registration certificate. Adoption of such a construction would be to make the applicant liable to punishment for the laches and delays of the authority and its office". 11.It was then submitted by the Appellant that in construing a notification granting exemption, the notification must be strictly construed without stretching the language of the notification to confer any unintended benefit. Similar argument was advanced before the Tribunal. In dealing with the submission the Tribunal noticed the decision of this Court in Collector of Central Excise v. Parle Exports (Pvt.) Ltd. reported in [1988 (38) E.L.T. 741] wherein this Court held that exemption should be strictly construed although the exemption clause in the notification may be construed liberall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Industries, and it was only after lot of pursuasion that the officer visited the factory of the respondent during the early part of 1988 and informed the respondent to move an application for permanent registration. In these circumstances another application was filed by the respondent in continuation of, or as a supplementary to their earlier application filed on 3rd December, 1986. On the basis of the record before us we are not in a position to record a categorical finding on this aspect of the matter. Learned Addl. Solicitor General rightly submitted that since the Collector has recorded a finding in clear terms that the first application made by the respondent was not granted and that it was only the second application which was granted, if the respondents wished to challenge this finding, the same should have been specifically urged before the Tribunal, and it was open to the Tribunal to record its finding on this aspect of the matter. Unfortunately there is no clear finding on this question, but in view of the observations in the order of the judicial member which do not appear to have been controverted in the other two orders of the members of the Tribunal, the factual p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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