Small-scale exemption for own-branded goods remains available despite duty-paid clearances of others' branded goods.

Notification No. 1/93-C.E. was interpreted to allow an assessee manufacturing both own-branded goods and branded goods of others to claim small-scale exemption on its own eligible goods, while paying normal duty on the branded goods of other manufacturers. The Tribunal applied para 2(iii) and followed the Larger Bench view in Intertec and the Division Bench in Monalisa EDC to hold that clearances of another person's branded goods are excluded from the exemption computation and do not forfeit the benefit on the assessee's own qualifying goods. Ramesh Food Products was distinguished as arising under a different notification, and the revenue's objection was rejected.

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Issues: Whether an assessee manufacturing both own-branded goods and branded goods of other manufacturers could claim the benefit of Notification No. 1/93-C.E. dated 28.03.1993 for its own branded goods while paying duty at the normal rate on the branded goods of others.

Analysis: The dispute turned on the interpretation of Notification No. 1/93-C.E. and the effect of para 2(iii) thereof. The Tribunal noted that the assessee had not availed the exemption in respect of branded goods of other manufacturers and had paid duty on those clearances, while claiming exemption only for goods eligible under paragraph 1 of the notification. The Larger Bench view in Intertec, followed by the Division Bench in Monalisa EDC, was applied to hold that branded goods of another person are excluded for the purpose of computing clearance limits and that payment of duty on such branded goods does not disentitle the assessee's other eligible goods from the SSI exemption. The decision in Ramesh Food Products was distinguished as arising under a different notification.

Conclusion: The assessee was entitled to the benefit of Notification No. 1/93-C.E. on its own eligible goods, and the revenue's attempt to deny the exemption was rejected.

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