SSI exemption clearances on a loan-licence basis need not be clubbed with own clearances for pre-deposit relief.

For SSI exemption purposes, clearances of goods manufactured on a loan licence basis are not to be clubbed with the assessee's own clearances when computing aggregate clearance value, where the facts prima facie support separate treatment. On that basis, the applicants showed a prima facie case that their own manufacturing clearances and loan-licence clearances should be treated distinctly, supporting waiver of pre-deposit and stay of recovery pending appeal. The interim relief operated only at the pre-deposit stage and did not finally determine the liability.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery in respect of duty demanded by clubbing clearances of goods manufactured on their own behalf and on behalf of a loan licensee for computing eligibility under the SSI exemption notifications.

Analysis: The Tribunal noted that earlier decisions had held that clearances of goods manufactured for a loan licensee are not required to be added to the clearances manufactured on the assessee's own behalf for the purpose of computing clearance value under the relevant SSI exemption notifications. On the facts presented, the applicants had shown, at least prima facie, that they were manufacturing goods both on their own behalf and on a loan licence basis, which supported their claim against clubbing for pre-deposit purposes.

Conclusion: The applicants were entitled to waiver of pre-deposit and recovery was stayed pending the appeal.

Final Conclusion: Interim relief was granted to the applicants, and the demand was not required to be secured by pre-deposit at that stage.

Ratio Decidendi: For SSI exemption purposes, clearances of goods manufactured on a loan licence basis are not to be clubbed with the assessee's own clearances when computing the clearance value, if the facts prima facie support such separate treatment.

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