SSI exemption based on aggregate clearances permits balancing the remaining limit against clearance value, even when apportioned for accounting.

A Small Scale Industry exemption notification measured relief by the aggregate value of clearances, and the Tribunal held that an assessee may structure clearances so the remaining balance within the prescribed limit is set off against the value of goods cleared. Because the notification governed the value of clearances rather than any artificial restriction on accounting form, apportioning a clearance for this purpose was permissible. The Tribunal preferred this view over the contrary line and upheld the assessee's entitlement to the exemption, rejecting the Revenue's challenge.

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Issues: Whether an assessee availing Small Scale Industry exemption under Notification No. 1/93-C.E. could split a clearance into parts so as to utilise the balance of the exemption limit for the full aggregate value of clearances during the financial year.

Analysis: The exemption operated on the value of goods cleared and the Tribunal preferred the later view that, where the notification grants exemption up to a monetary limit based on aggregate clearances, the assessee is entitled to arrange clearances so that the remaining value within the limit is deducted from the total clearance value. The reasoning followed the principle that the notification speaks to the value of clearances and not to any artificial restriction on the manner in which the clearance is accounted for, and the earlier contrary view was not followed.

Conclusion: The assessee was entitled to split the clearance for the purpose of availing the balance of the SSI exemption limit; the Revenue's challenge failed.

Final Conclusion: The Tribunal upheld the order granting the benefit of SSI exemption in the manner adopted by the assessee and declined to interfere with the appellate order.

Ratio Decidendi: Where an exemption notification grants relief with reference to the value of goods cleared up to a prescribed aggregate limit, the remaining balance of that limit may be adjusted against the clearance value, and such treatment cannot be denied merely because the clearance is apportioned for accounting purposes.

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