Separate exemption limits for different products under small-scale exemption notification sustained; Revenue challenge failed.

A small-scale manufacturer clearing phenol formaldehyde resin and bamboo mats was held entitled to exemption under Notification No. 175/86 because the dispute turned on separate exemption limits for different products. The Tribunal followed its earlier view in the same line of dispute that the balance exemption remained available where clearance of one product did not exhaust the limit applicable to the other. As that prior decision had not been reversed or set aside, the appellate authority was justified in adopting it. The exemption benefit was sustained and the Revenue's challenge failed.

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Issues: Whether the respondent was entitled to exemption under Notification No. 175/86 for duty-free clearances of phenol formaldehyde resin despite the total clearances having crossed the earlier limit for bamboo mats.

Analysis: The respondent was a small scale manufacturer clearing two goods. The dispute turned on the availability of separate exemption limits for the different products under the notification. The Tribunal's earlier decision in the same line of dispute had already accepted that the balance exemption was available where the clearance of one product did not exhaust the limit relatable to the other product. That decision had not been reversed or set aside, and the appellate authority was justified in following it. No reason was shown to depart from the earlier view.

Conclusion: The respondent was entitled to the exemption, and the Revenue's challenge failed.

Final Conclusion: The order granting the exemption benefit was sustained and the Revenue's appeal was rejected.

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