SSI exemption and Cenvat credit for export clearances may coexist where separate accounts are maintained.

Simultaneous availment of SSI value-based exemption on unbranded goods and Cenvat credit on inputs used in export clearances was treated as prima facie permissible where the credit was not taken for goods cleared for home consumption. The order noted that the relevant notification appeared to confine the restriction on credit to domestic clearances, and that separate accounts could support both the exemption and the credit claim. On that basis, the applicant was found to have made out a prima facie case, and pre-deposit of duty was dispensed with while recovery was stayed pending disposal of the appeal.

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Issues: Whether the applicant was entitled to simultaneous availment of SSI value-based exemption on unbranded goods and Cenvat credit on inputs used in goods cleared for export under the relevant notification.

Analysis: The dispute turned on whether the restriction on availing Cenvat credit applied to all clearances or only to goods cleared for home consumption. The order notes that the credit was taken only in respect of export clearances and not for goods cleared for home consumption, and that the notification prima facie permitted such treatment. Reliance was also placed on the Board's circular supporting maintenance of separate accounts for availing both SSI exemption and credit.

Conclusion: The applicant made out a prima facie case for the benefit claimed, and pre-deposit of duty was dispensed with with stay of recovery till disposal of the appeal.

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