Export treatment for domestic clearances and notification exemption were sent to a Larger Bench amid conflicting Tribunal views.

Clearances by a 100% export-oriented unit against foreign exchange receipt were examined as to whether they constituted exports for duty purposes; the text states that export required physical removal of goods out of India, so domestic clearances could not be treated as exports. Exemption under Notification No. 125/84-C.E. was also considered unavailable because its proviso denied relief where goods were permitted to be sold in India. In view of conflicting Tribunal decisions on these points, the controversy was referred to a Larger Bench for authoritative determination, with no final adjudication on duty liability or exemption entitlement.

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Issues: Whether clearances by a 100% export-oriented unit against foreign exchange receipt could be treated as exports for duty purposes, whether exemption under Notification No. 125/84-C.E. was available, and whether the conflicting Tribunal views required reference to a Larger Bench.

Analysis: The clearances were made within India against foreign exchange receipt, but the reasoning noted that export, for the relevant law, meant physically taking goods out of India. The exemption notification was also considered inapplicable because its proviso denied exemption where the goods were allowed to be sold in India. As earlier Tribunal decisions had taken a contrary view, and other decisions supported the view that domestic clearances could not be treated as exports, the matter was considered fit for examination by a Larger Bench.

Conclusion: The matter was referred to the Larger Bench for determination.

Final Conclusion: No final adjudication on the duty liability or exemption claim was recorded, and the controversy was sent for authoritative resolution by a Larger Bench.

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