Loan licensee clearances are excluded from exemption threshold computation under Notification No. 9/2002-CE.

For Notification No. 9/2002-CE, goods manufactured on behalf of a loan licensee and cleared on payment of duty are excluded from the aggregate clearances used to test the exemption threshold. The Tribunal applied paragraph 3(b) and followed its earlier ruling that such clearances are not to be counted in the assessee's factory clearances for eligibility computation. The later appellate order in the assessee's own matter adopted the same interpretation, confirming that these disputed clearances were not includible and that the exemption benefit remained available.

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Issues: Whether the value of goods manufactured on behalf of a loan licensee and cleared on payment of duty was required to be included while computing the aggregate clearances for eligibility under Notification No. 9/2002-CE.

Analysis: The notification was construed with reference to paragraph 3(b), and the Tribunal followed its earlier decision holding that clearances of goods manufactured for a loan licensee and removed on payment of duty are not to be counted for determining the assessee's factory clearances for the exemption limit. The issue had already been settled by prior Tribunal authority and the later appellate order in the assessee's own case adopted the same view.

Conclusion: The disputed clearances were not includible in the eligibility computation, and the assessee was entitled to the exemption benefit.

Ratio Decidendi: For the purpose of Notification No. 9/2002-CE, goods manufactured on behalf of a loan licensee and cleared on payment of duty are excluded from the aggregate clearances relevant to the exemption threshold.

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