Exemption clearance computation under Notification 1/93-C.E. must follow the Larger Bench ruling, with duty liability reconsidered on remand.

For exemption under Notification No. 1/93-C.E., the computation of first clearances depended on the correct commencement point, namely whether it ran from the date the goods became specified goods or from the date the exemption was opted for. The Tribunal applied the Larger Bench ruling cited before it, noting no objection from the parties to that approach subject to the adjustments indicated in para 13 of that decision. The impugned orders were set aside and duty liability was remanded for fresh determination in accordance with the Larger Bench decision, including the relevant duty adjustment.

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Issues: Whether the value of first clearances for the purpose of exemption under Notification No. 1/93-C.E. was to be computed from the date the goods became specified goods or from the date the exemption was opted for, and whether the duty liability required reconsideration in light of the Larger Bench ruling.

Analysis: The dispute turned on the correct commencement point for computing clearances under the exemption notification. The Tribunal accepted the contention that the matter should be governed by the Larger Bench decision cited before it and noted that the parties had no objection to adopting that view, subject to the adjustments indicated in para 13 of that decision. On that basis, the impugned orders were set aside and the matter was sent back for fresh determination of duty liability.

Conclusion: The duty liability was directed to be redetermined on remand in accordance with the Larger Bench decision, with adjustment of duty as indicated therein.

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