Aggregate value of clearances must include exempted goods after amendment, determining eligibility under the small-scale exemption scheme.

For eligibility under Notification No. 8/2003-C.E., the aggregate value of clearances for the succeeding financial year had to be computed under the notification as amended by Notification No. 30/2003-C.E. from 01.04.2003. Clause 3A required inclusion of the value of all excisable goods cleared for home consumption in the preceding year, including exempted goods cleared under other notifications. The amendment governed the computation prospectively and did not operate retrospectively. Earlier departmental clarification and RAC minutes could not override the amended notification's plain text. On that basis, exempted goods cleared in the preceding year were includible and the refund claim stood rejected.

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Issues: Whether, for computing the aggregate value of clearances for eligibility under Notification No. 8/2003-C.E., the value of exempted goods cleared in the preceding year was to be included for the succeeding financial year.

Analysis: The initial exemption notification excluded the value of exempted goods under other notifications for computing clearances, but it was amended by Notification No. 30/2003-C.E. with effect from 01.04.2003 by inserting clause 3A for computing the aggregate value of clearances of all excisable goods for home consumption in the preceding year. The amendment changed the method of computation for the current year's eligibility and did not give retrospective effect to the notification. The earlier clarification relied upon by the assessee was issued before the amendment, and statutory interpretation had to be governed by the notification as amended. The pleadings and RAC minutes did not override the clear text of the notification.

Conclusion: The exempted goods cleared in the preceding year were required to be included in the computation, and the refund claim was rightly rejected.

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