Small scale exemption computation included Heading 93.06 clearances under the amended notification, sustaining the duty demand.

Notification No. 9/2001, as amended by Notification No. 47/2001-C.E., required clearances of goods falling under Heading 93.06 made between 1 April 2001 and 30 September 2001 to be included when computing the aggregate value of clearances for small scale exemption. The amended proviso to paragraph 3 expressly treated those home-consumption clearances as part of the nil-rate computation for financial year 2001-2002, showing a change in the method of calculation rather than an impermissible retrospective levy. On that basis, the clearances were rightly counted for exemption purposes and the duty demand was sustained.

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Issues: Whether the clearances of goods falling under Heading 93.06 made between 1 April 2001 and 30 September 2001 were required to be included while computing the aggregate value of clearances for the purpose of small scale exemption under Notification No. 9/2001, as amended by Notification No. 47/2001-C.E. dated 1-10-2001.

Analysis: Notification No. 9/2001 granted partial exemption to eligible small scale units up to the prescribed aggregate value of clearances in a financial year. Paragraph 3, as amended by Notification No. 47/2001-C.E. dated 1-10-2001, expressly inserted a proviso stating that clearances for home consumption of goods falling under Heading 93.05 and parts under Heading 93.06 or 93.07 between 1 April 2001 and 30 September 2001 were to be taken into account while computing the aggregate value of clearances at nil rate of duty for the financial year 2001-2002. The amended language showed a change in the manner of computation and did not support the contention that the department had applied the amendment retrospectively in an impermissible manner.

Conclusion: The clearances of the said goods were rightly included in the aggregate value for exemption purposes, and the demand of duty was sustained against the assessee.

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