ORDER
G.R. Sharma, Member (T)
1. Shri L.C. Agarwal, learned counsel appearing for the appellants, submitted that the appellants applied for an SSI Certificate on 26-2-1986. He submitted that the Notification No. 175/86 granting exemption from duty was issued on 1-3-1986; that the appellants were granted SSI Certificate on 18-10-1986; and since they had applied for grant of such SSI Certificate on 26-2-1986 i.e. before the coming into force of exemption Notification No. 175/86, therefore, the concession under this exemption notification should be available to them as an SSI Unit from 1-3-1986. In support of his contention, the learned counsel cited and relied upon the decision rendered in the case of Satya Narain Agarwal and Anr. v. Govt. of India reported in 1978 (2) E.L.T. (J 476) and the decision of the Tribunal in the case of Collector of Central Excise v. TISCO reported in 1988 (26) E.L.T. 320. The learned counsel also cited and relied upon the decision of the Hon’ble Supreme Court reported in AIR 1985 SC 1698 and submitted that taxing statute should be interpreted sympathetically, keeping in view the intention of the Government to give benefit to a particular class of citizens. Explaining the position further, the learned counsel submitted that the appellants were a DGTD unit and the Government of India in a Press Note had clarified that if the investment in a DGTD Unit was less than 35 lakhs, then such a unit shall be deemed to be a small scale unit. The learned counsel, therefore, submitted that having regard to the Press Note issued by the Government of India as also the fact that they have applied for the SSI Certificate on 26-2-1986, the benefit under Notification No. 175/86 should be given to them right from 1-3-1986.
2. Shri Sanjeev Sachdeva, learned SDR, submitted that it is not the date of application which is material for extending the benefit under any exemption Notification, but the material date should be the date of issue of the SSI Certificate. He submitted that, admittedly, the SSI Certificate in the instant case was issued on 18-10-1986 and in that certificate there was no stipulation that this certificate was issued with any retrospective date. The learned SDR submitted that in the absence of any stipulation in this Certificate that the SSI Certificate was to be effective from 1-3-1986, the benefit under exemption Notification No. 175/86 cannot be extended to the appellants w.e.f. 1-3-1986. On the question of interpretation of statutes, the learned SDR cited and relied upon the Hon’ble Supreme Court decision reported in 1991 (55) E.L.T. 454 as also the decision of the Hon’ble Supreme Court reported in 1991 (55) E.L.T. 437.
4. On careful consideration of the submissions made by both sides as well as on perusal of the record show [sic] that the short question for determination before us is, whether the benefit of Notification No. 175/86 can be extended to the appellants from 1-3-1986 to 17-10-1986 as the benefit of exemption Notification, referred to above, has already been extended to the appellants w.e.f. 18-10-1986 onwards. We find that the appellants had applied for an SSI Certificate on 26-2-1986. We also observe that the appellants were a registered DGTD Unit: meaning thereby, they were already having the status as a DGTD Unit. We also note that in a number of cases, this Tribunal had held that the date of application for an SSI Certificate is a material date and must be given due consideration. However, in the instant case, we find that the facts are different, inasmuch as, the appellants are already a DGTD Unit, and status of the appellants can be said to have changed not from the date of application submitted by the appellants, but from the date or on the date when SSI Certificate was granted by the Director of Industries. In the instant case, admittedly, the SSI Certificate was granted on 18-10-1986. We also observe that the Director of Industries has not extended any benefit as to the retrospective application of the certificate, as there is no stipulation in this certificate itself that this certificate should be deemed to have been issued or shall be followed from 1-3-1986. Having regard to the above discussion, we hold that the concession under Notification No. 175/86, dated 1-3-1986 shall be available to the appellants only w.e.f. 18-10-1986. In this view of the matter, the impugned Order is upheld and the appeal is rejected.