Separate exemption limits under distinct customs notifications cannot be denied by clubbing clearances into one ceiling.

Where two value-based exemption notifications apply to different sets of goods, their clearances may be aggregated only to test eligibility, but the distinct exemption limits under each notification cannot be denied by clubbing them into a single ceiling. The appellate authority stated that Notification No. 75/87-C.E. and Notification No. 1/93-C.E. operated independently for the respective goods covered by them, and that the show cause notice did not clearly capture the basis for denying separate treatment. The impugned order was set aside and the matter remanded for fresh consideration under the correct interpretation of the notifications.

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Issues: Whether the clearances made under Notification No. 75/87-C.E. and Notification No. 1/93-C.E. were required to be clubbed for the purpose of computing the exemption limits and consequent duty liability.

Analysis: The exemption under Notification No. 75/87-C.E. was available separately to the goods covered by that notification up to the prescribed clearance value, and thereafter at a concessional rate for the next slab. Notification No. 1/93-C.E. operated independently for the other goods specified therein. The aggregate value of clearances under both notifications could be taken into account only for testing eligibility to the respective notifications, not for denying the distinct exemption limits available under each notification. The show cause notice did not clearly bring out this position, and the matter required reconsideration on that basis.

Conclusion: The clubbing of the clearances for restricting exemption to a single limit was held to be incorrect. The assessee was entitled to separate treatment under the two notifications, and the matter was remanded for fresh decision.

Final Conclusion: The impugned order was set aside and the dispute was sent back for reconsideration in accordance with the correct interpretation of the exemption notifications.

Ratio Decidendi: Where two value-based exemption notifications operate for different sets of goods, their clearance values may be aggregated only for determining eligibility, but the distinct exemption limits under each notification cannot be denied by clubbing them into one common ceiling.

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