Exemption clearances for separate goods need not be clubbed when each product qualifies under its own notification.

Clearances of different specified goods eligible under separate exemption notifications were not required to be clubbed for computing each product's independent exemption limit. The clause on aggregate value of clearances was applied only to determine eligibility by reference to the preceding financial year, not to merge clearances of distinct goods for exemption purposes. The reasoning from the cited precedent was followed, treating aggregate clearances of excisable goods and product-wise exemption limits as operating on different planes. The demand was therefore unsustainable.

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Issues: Whether the clearances of Hi-Fi Music Systems and Air Conditioners, each eligible for exemption under separate notifications, were required to be clubbed for applying the clearance limits under the exemption scheme.

Analysis: The relevant clause dealing with aggregate value of clearances was held to govern the determination of eligibility on the basis of the preceding financial year for the current year. It was found not to require clubbing of the clearances of different specified goods for the purpose of computing the separate exemption limits available to each product under the respective notifications. The reasoning adopted in the cited precedent was applied to hold that aggregate clearances of all excisable goods and clearances of specified goods for exemption purposes operate on different planes.

Conclusion: The clearances of the two products were not liable to be clubbed for denying separate exemption benefits, and the demand could not be sustained.

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