Exemption notification scope: excluded crates could not be counted in aggregate clearances for eligibility under the notification.

An exemption notification that covers specified tariff headings but expressly excludes crates does not permit the value of crates to be added back into aggregate clearances through the Explanation. The Explanation applied only to clearances of goods already covered by the notification when exported or otherwise exempt or nil-rated; it could not override the express exclusion of crates from the notification's scope. Treating excluded goods as part of the aggregate would defeat the structure of the exemption. The value of clearances of crates was therefore not includible in computing aggregate clearances for exemption eligibility.

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Issues: Whether the value of clearances of crates, being goods excluded from the scope of the exemption notification, was required to be included in computing the aggregate value of clearances for the purpose of exemption under the notification.

Analysis: The notification granted exemption to goods falling under specified tariff headings, but expressly excluded crates from its purview. The Explanation to the relevant serial number only excluded clearances of goods covered by the notification when such goods were exported or otherwise exempted from duty or chargeable to nil rate of duty. That Explanation could not be used to bring back into computation goods which were already excluded from the notification itself. A reading that treated the excluded variety as part of the aggregate clearances would defeat the structure of the exemption.

Conclusion: The value of clearances of crates was not includible in the aggregate value of clearances for the purpose of the notification, and the assessee succeeded.

Ratio Decidendi: Where an exemption notification expressly excludes a category of goods from its coverage, the value of clearances of such excluded goods cannot be counted while computing the aggregate clearances for availing the exemption.

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