State when a certificate of registration can be issued to an undertaking under the Industries (Development and Regulation) Act, 1951. Under what circumstances such registration is not required ?

CS Executive · Economic and Commercial Laws · PYQS · December 2021
State when a certificate of registration can be issued to an undertaking under the Industries (Development and Regulation) Act, 1951. Under what circumstances such registration is not required ?

Answer & Explanation:

Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, after such investigation as it may consider necessary, grants the applicant a certificate of registration containing, besides other prescribed particulars, the productive capacity of the undertaking. In specifying the productive capacity in the certificate of registration, the Central Government takes into consideration the following matters: the productive or installed capacity of the undertaking as specified in the application for registration; level of production immediately before the date on which the application for registration was made; the level of the highest annual production during the preceding three years; the extent to which production during the said period was utilised for export; such other factors as the Central Government may consider relevant including the extent of underutilisation of capacity, if any during the relevant period due to any cause. Circumstances when Registration is Not Necessary: It may be noted that registration of an undertaking will not be necessary if the undertaking (i) is a small scale industrial undertaking or (ii) is otherwise exempt from the licensing/registration provisions of the Act or (iii) where the undertaking concerned is not satisfying the definition of the term 'factory' under the Act.

Topics: Industries (Development and Regulation) Act, 1951

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