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Issues: (i) Whether clearances of readymade garments bearing the brand name of another person during 01.04.2001 to 30.04.2001 were to be included while computing the aggregate value of clearances for the financial year 2001-2002 under the amended SSI exemption notification; (ii) Whether the demand was barred by limitation on the ground that the department had knowledge of the relevant facts and there was no suppression.
Issue (i): Whether clearances of readymade garments bearing the brand name of another person during 01.04.2001 to 30.04.2001 were to be included while computing the aggregate value of clearances for the financial year 2001-2002 under the amended SSI exemption notification.
Analysis: The amended notification expressly provided that clearances for home consumption of goods falling under Chapter 62 between 1st April 2001 and 30th April 2001 were to be taken into account while computing the aggregate value of clearances at nil rate of duty for the financial year 2001-2002. The text of the amendment was treated as clear and unambiguous. The departmental circular was also read as confirming that clearances already effected up to 30.04.2001 were to be counted for the exemption limit beginning from 01.05.2001. The earlier decisions relied upon by the assessee were distinguished because they arose under a different notification lacking such an express provision.
Conclusion: The clearances in question were rightly included in the computation, and the assessee's contention was rejected.
Issue (ii): Whether the demand was barred by limitation on the ground that the department had knowledge of the relevant facts and there was no suppression.
Analysis: The claim of absence of suppression was not accepted because the assessee obtained registration only on 29.05.2001 and the department could not be assumed to know the April 2001 clearances. In a self-assessment regime, the assessee was required to correctly determine duty liability. The cases cited on suppression were distinguished on facts as they involved situations where the department was already aware of the material facts.
Conclusion: The plea of limitation failed and the demand was sustained.
Final Conclusion: The amended exemption scheme was held to require inclusion of the disputed April 2001 clearances in the threshold computation, and the challenge to the demand on limitation also failed, resulting in dismissal of the appeal.
Ratio Decidendi: Where an exemption notification expressly directs that specified pre-commencement clearances must be counted for computing the exemption threshold, that express stipulation governs the computation, and a plea of non-suppression will not succeed where the assessee alone was in a position to disclose the relevant clearances in a self-assessment regime.
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