Small scale exemption notification: duty may be computed by clearance-value slabs, not by treating one consignment as indivisible.

A small scale exemption notification linked to value of clearances allows duty to be worked out by applying the relevant slab rates to the aggregate value of clearances, rather than treating a single consignment as an indivisible unit. The Tribunal noted that the assessee had discharged duty by applying the notification's slabs on the first portion of the clearance value and the normal rate on the balance. It rejected the Revenue's contention that the entire consignment had to be assessed as one block, and held that the notification operated by reference to clearance value, not the physical form of the goods.

---

---

Issues: Whether the assessee was entitled to apply the slab rates under Notification No. 1/93-C.E. dated 28-2-93 on the basis of separate value brackets for a single consignment, or whether the entire consignment value had to be treated as one unit for duty purposes.

Analysis: The Tribunal noted that the assessee had cleared goods of an aggregate value of about Rs. 77 lakhs and had discharged duty at 10% on the first Rs. 50 lakhs, at 15% on the next Rs. 25 lakhs, and at the normal rate on the balance. The relevant small scale exemption notification was treated as granting benefit with reference to the value of clearances, not the mere physical quantum of goods in a consignment. On that basis, the Tribunal rejected the contention that the consignment could not be split for purposes of determining the applicable duty slabs.

Conclusion: The assessee correctly applied the notification and the Revenue's objection to split valuation failed.

Ratio Decidendi: Under a small scale exemption notification framed with reference to value of clearances, duty may be computed according to the applicable value slabs of the clearance and not compulsorily on the entire consignment as an indivisible unit.

---