SSI exemption turnover computation excludes export clearances, supporting waiver of predeposit and stay of recovery.

Export clearances are not to be included in the aggregate value of clearances for SSI exemption, as only clearances for home consumption are counted under the relevant notifications. The Tribunal relied on its earlier view and the Board's circular clarifying that exports fall outside the computation of the prescribed turnover limit. On the stated facts, the goods were cleared under Form H, which was accepted as proof of export, and the department's attempt to treat those clearances as home consumption was found untenable at the prima facie stage. A prima facie case was therefore made out for waiver of predeposit and stay of recovery.

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Issues: Whether the appellants had made out a prima facie case for waiver of predeposit and stay of recovery in a dispute concerning inclusion of export clearances in the aggregate value of clearances for SSI exemption.

Analysis: The dispute turned on whether clearances made for export were to be counted in the aggregate value of clearances for the purpose of SSI exemption under the relevant notifications. Reliance was placed on the Tribunal's earlier view that only clearances for home consumption are to be included, along with the Board's circular clarifying the computation of the Rs. 3 crores limit and excluding exports. On the facts, the goods were cleared under Form H, which was treated by the department itself as proof of export, and the attempt to characterise those clearances as home consumption clearances was found, at this stage, to be untenable.

Conclusion: A prima facie case was made out for waiver of predeposit and stay of recovery in favour of the appellants.

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