Exemption threshold computation must follow the notification's own method; separate exempt clearances are not automatically excluded.

The exemption threshold under one notification must be computed strictly by that notification's own method, and clearances exempted under a different area-based notification are not automatically excluded unless the text of the notification expressly permits it. On a prima facie view, the Tribunal held that the appellant could not exclude such exempt clearances while testing eligibility. It also noted that no financial hardship was pleaded, so complete waiver of pre-deposit was not justified. Conditional stay was therefore granted, with partial pre-deposit ordered and the balance duty and penalty stayed until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of duty and penalty, and whether the clearances of goods exempted under the area-based exemption notification could be excluded while computing the eligibility limit under the other exemption notification.

Analysis: The Tribunal read the exemption notifications and noted that the method for computing the monetary limit for eligibility under the relevant notification was different from the method for determining the exemption limit itself. It held, prima facie, that clearances exempted under the separate area-based notification could not be excluded for the purpose of the eligibility threshold. The Tribunal also noted that no financial hardship was pleaded.

Conclusion: The appellant was not entitled to complete waiver of pre-deposit. Partial relief was granted by directing deposit of Rs. 7.5 lakhs and waiving the balance duty and the entire penalty until disposal of the appeal.

Final Conclusion: The stay application was disposed of with conditional relief, leaving the main appeal unaffected on merits.

Ratio Decidendi: For computing eligibility under the exemption notification, the prescribed monetary threshold must be determined according to the notification's own mechanism, and clearances exempted under a different notification are not automatically excluded unless the notification so provides.

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