Small-scale exemption clearances under separate notifications need not be clubbed, so the duty demand and penalty failed.

Clearances made under two separate small-scale exemption notifications were not required to be clubbed for computing the first-clearance limit. The Tribunal noted that the appellants had availed concessional duty under Notification No. 8/99-CE and Notification No. 10/99-CE for different products, and that later decisions had correctly held that clearances under one notification need not be counted while applying the first-clearance condition under the other. The issue was treated as settled and no longer res integra. The demand and penalty were therefore not sustainable.

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Issues: Whether, for computing the first clearances eligible for small-scale exemption, clearances made under two different exemption notifications were required to be clubbed.

Analysis: The appellants manufactured hi-fi music systems and air conditioners and availed concessional duty under Notification No. 8/99-CE and Notification No. 10/99-CE respectively. The demand was confirmed on the premise that clearances under both notifications had to be aggregated for determining the value of first clearances eligible for exemption. The Tribunal noted that the issue had already been settled in the appellants' own case, and that later decisions had held that clearances under one notification need not be taken into account for applying the first-clearance condition under the other notification. It was held that the subsequent decisions correctly interpreted the notifications and that the matter was no longer res integra.

Conclusion: The clearances were not required to be clubbed, and the demand and penalty could not be sustained.

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