Small scale industry exemption applied to full clearance value, with duty confined only to the excess above the threshold.

The small scale industry exemption under Notification No. 1/93 was applied on the clearance value as a whole, so eligibility to the concession was determined up to the prescribed value limit and duty was payable only on the excess. The analysis rejected splitting a single consignment for assessment at different rates and followed earlier co-ordinate Bench decisions treating that approach as settled. The result stated was that the exemption remained available up to the threshold, with duty confined to the value above it.

---

---

Issues: Whether the benefit of Notification No. 1/93 could be extended up to the prescribed exemption limit and duty levied only on the value in excess thereof, instead of splitting the value of a single consignment for assessment at different rates.

Analysis: The dispute concerned the manner of applying the small scale industry exemption. The relevant principle applied was that where the exemption operates up to a specified value limit, the clearance value is to be taken as a whole for determining eligibility to the concession, and duty is payable only on the portion exceeding the exemption threshold. The issue was treated as already settled by earlier co-ordinate Bench decisions, and no infirmity was found in the lower appellate order adopting that view.

Conclusion: The assessee was entitled to the benefit of Notification No. 1/93 up to the prescribed value limit, and duty was payable only on the excess value. The Revenue's challenge failed.

---