Jyoti Balasundaram, Member (J)

1. The issue for determination in the above appeal is the eligibility of aerated waters manufactured by the appellants to the benefit of exemption in terms of Notification 175/86 dated 1-3-1986.

2. The appellants are the manufacturers of aerated waters namely soda and flavour sweetened drinks falling under Heading Nos. 22.01 and 22.02 respectively of the Central Excise Tariff Act, 1985. The Government of India issued Notification No. 175/86-CE on 1-3-1986 (hereinafter referred to as "the said notification") giving certain exemptions to small scale industry based on value of their clearances and the aerated waters were covered under the said exemption. The appellant company was originally registered as a small scale unit with the Director of Industries and Mines, Government of Goa, Daman Diu vide Registration No. DI/Goa/491/70 dated 19-1-1970. As per this registration, the value of plant and machinery as per the norms fixed by the Directorate of Industries and Mines was not to exceed Rs. 7.5 lakhs. Subsequently, this limit of Rs. 7.5 lakhs was increased to Rs. 10 lakhs in 1975 and to Rs. 20 lakhs in 1980. When the value limit of plant and machiner