Aggregate clearance value under exemption notification must include goods cleared under another exemption, limiting eligibility

Under Notification No. 175/86-C.E., the aggregate value of clearances had to include goods cleared under another exemption notification as well. The Tribunal read the notification plainly and held that clearances availing a separate exemption could not be excluded from the computation of eligibility under Notification No. 175/86-C.E. A cited precedent was treated as inapplicable on the facts. The inclusion of those additional clearances was therefore upheld, and the assessee's challenge failed.

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Issues: Whether the value of clearances made under another exemption notification was required to be included while computing the aggregate value of clearances for availing benefit under Notification No. 175/86-C.E.

Analysis: The Tribunal noted that the appellants had availed exemption for certain goods under Notification No. 175/86-C.E. and were also clearing other pharmaceuticals under Notification No. 29/88. The demand arose because the value of clearances under the other notification was added to the total clearances for determining eligibility under the first notification. The Tribunal held that, on a plain reading of Notification No. 175/86-C.E., the value of goods cleared under the benefit of another notification was also to be included in the computation of aggregate clearances. The cited precedent was found inapplicable to the facts.

Conclusion: The inclusion of the value of clearances made under the other notification was upheld, and the assessee's challenge failed.

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