SSI exemption and job-work clearances cannot be clubbed when duty liability rests with the independent job worker.

For SSI exemption under Notification No. 1/93, clearances of goods manufactured by an independent job worker could not be clubbed with the assessee's own clearances because the duty liability attached to the job worker. The Tribunal distinguished Revenue authorities cited on the basis that those matters involved a different factual and legal setting, including goods sent under Notification No. 214/86, which was not present here. On the facts found, the demand to deny SSI benefit was not sustainable, and the assessee retained the exemption.

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Issues: Whether the value of goods manufactured by a job worker could be added to the assessee's own clearances for the purpose of denying the benefit of SSI exemption under Notification No. 1/93.

Analysis: The goods in question were admittedly manufactured by an independent job worker. The governing principle applied was that where excisable goods are manufactured by the job worker, the liability to pay duty lies on the job worker. The Tribunal distinguished the Revenue's reliance on other decisions as those cases involved a different factual and legal setting, including goods sent under Notification No. 214/86, which was not the position here.

Conclusion: The job-work clearances could not be clubbed with the assessee's own clearances, and the demand was not sustainable.

Final Conclusion: The Revenue's challenge to the Commissioner (Appeals)' order failed, and the assessee retained the benefit of the exemption on the facts found.

Ratio Decidendi: For SSI exemption purposes, goods manufactured by an independent job worker cannot be treated as the assessee's own clearances where duty liability attaches to the job worker.

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