SSI exemption valuation: duty-paid clearances between own units cannot be counted twice for the exemption threshold.

Duty-paid intermediate goods cleared from one unit of the same manufacturer to another unit cannot be added again to the aggregate value of clearances for denying Small Scale Industry exemption where that value has already been included in the combined turnover. The relevant exemption limit must be computed on the progressive total once only, and double counting of the same clearances is impermissible. Applying the prior decision relied on, relief was upheld and the Revenue challenge failed.

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Issues: Whether the value of intermediate goods cleared from one unit to another unit of the same manufacturer on payment of duty could be added again to the aggregate value of clearances for denying Small Scale Industry exemption under Notification No. 9/99 dated 28-2-1999.

Analysis: The value of the intermediate product cleared from Unit-I to Unit-II had already been accounted for in the progressive total of clearances shown by the assessee. Since the same value was included in the combined clearances of both units, it could not be added a second time for the purpose of computing the exemption limit. The prior decision relied upon was found applicable to the facts, and no illegality or infirmity was found in the order granting relief.

Conclusion: The value of the duty-paid clearances to Unit-II could not be added again to the assessable value for SSI exemption, and the Revenue appeal failed.

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