Exclusion of third-party branded clearances from the aggregate turnover ceiling supported waiver of pre-deposit and stay of recovery.

For computing the aggregate value of clearances under Notification No. 9/2003-C.E., the exclusion clauses in para 3(b) and para 3(A)(b) were read as overriding para 2(vi) for the limited purpose of the monetary ceiling. On that interpretation, branded goods manufactured for loan licence holders, where the brand name belonged to another person, were excluded from the applicants' clearances and were not clubbed with their own turnover. After exclusion, the applicants remained within the ceiling and established a prima facie case for waiver of pre-deposit and stay of recovery, supported by Tribunal precedent.

---

---

Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery on a prima facie view that, for computing the aggregate value of clearances under Notification No. 9/2003-C.E. dated 01.03.2003, the value of branded goods manufactured for loan licence holders, where the brand name belonged to another person, was to be excluded.

Analysis: The exclusion clauses in para 3(b) and para 3(A)(b) of the notification were read as overriding para 2(vi) for the limited purpose of computing the aggregate value of clearances of Rs. 3 crores. On that reading, clearances of branded goods bearing another person's brand name were not to be clubbed with the applicants' own clearances. After excluding the branded clearances, the applicants remained within the monetary ceiling and, therefore, showed a prima facie case for the concession claimed. The view was also supported by the cited Tribunal precedent.

Conclusion: Waiver of pre-deposit was granted and recovery of duty and penalty was stayed pending the appeal.

---