B. P. Singh, J. - (1.) 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 exemption merely because on account of administrative delays the certificate of registration is issued much later.
(2.) Briefly stated the facts of the case are that the respondent is engaged in the business of manufacturing cooling towers. It commenced production with effect from June, 1986. On December 3, 1986 it applied to the Director of Industries, West Bengal, for grant of registration. There is some dispute as to whether this application was for grant of registration or for the grant of provisional registration, a question on which we wish to express no opinion. It appears that the said application was not disposed of and therefore sometime after February, 1988 as contended by the appellant, the respondent applied afresh for permanent registration which was granted by order dated March 31, 1988. The question, which arises for consideration, is whether the respondent is entitled to the benefit of exemption under the aforesaid notification with effect from the date of application or with effect from March 31, 1988, the date on which registration was granted.
(3.) The Collector by his order dated January 31, 1989 took the view that benefit of the exemption can be granted only with effect from the date on which the registration certificate was issued. He observed that the respondent had applied for provisional registration on 3-12-1986 which was not granted to it. Later a permanent registration certificate as a small scale industrial unit was issued to it on 31-3-1988 in response to another application made for grant of permanent registration. Thus the Respondent was given permanent registration pursuant to a fresh application made subsequently, and not pursuant of its earlier application submitted on 3-12-1986 for provisional registration.;