SSI exemption turns on correct clearance quantification; reassessment of wet grinder parts kept turnover within the prescribed limit.

SSI exemption under Notification No. 1/93-C.E. depended on correct computation of the aggregate value of clearances for 1993-94 and 1994-95. The appellate authority excluded quantities of wet grinder parts wrongly treated as complete wet grinders, and, on the assessee's private register and worksheets, found the clearances remained within the prescribed limit. Mere presence of spares and parts in the factory did not dislodge that recomputation, and the Revenue did not impeach the reliability of the worksheets used for quantification. On that basis, the assessee qualified for SSI benefit and the duty demand was not sustainable.

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Issues: Whether the assessee was entitled to Small Scale Industry exemption under Notification No. 1/93-C.E. in relation to the aggregate value of clearances for 1993-94 and 1994-95, and whether the demand of duty could be sustained on the basis of the department's quantification.

Analysis: The lower appellate authority corrected the original authority's computation of the aggregate value of clearances after excluding quantities of parts of wet grinders that had been wrongly treated as wet grinders themselves. On the assessee's private register and the worksheets produced, the aggregate value of clearances was found to remain within the prescribed limit of Rs. 30 lakhs. The Revenue's contention based on the mere presence of spares and parts in the factory did not dislodge the appellate authority's finding on quantification, nor did it challenge the reliability of the worksheets relied upon for recomputation.

Conclusion: The assessee was entitled to SSI benefit, and the demand of duty was not sustainable.

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