SSI exemption computation includes branded rural-area goods in aggregate clearances unless the notification expressly excludes them.

For SSI exemption under Notification No. 9/2003-CE, the aggregate value of clearances is computed according to the notification's conditions, and branded goods manufactured in a rural area are not automatically excluded. The Tribunal's stated view was that such goods must be included in the aggregate value unless the notification expressly provides an exclusion. As the goods were admittedly branded and manufactured in a rural area, their value had to be counted for determining eligibility for SSI exemption, leaving the assessee unable to exclude them from the threshold computation.

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Issues: Whether the value of goods bearing the brand name of another person, manufactured in a rural area, was required to be included in the aggregate value of clearances for availing SSI exemption under Notification No. 9/2003-CE dated 01.03.2003.

Analysis: The issue turned on the construction of the SSI notification and the manner in which aggregate clearances were to be computed. The Tribunal relied on its earlier view that the relevant conditions in the notification govern the computation of aggregate value and that branded goods manufactured in a rural area are not to be excluded from that computation. Since the goods in question were admittedly branded goods manufactured in a rural area, their value had to be taken into account while determining eligibility for SSI exemption.

Conclusion: The value of such goods was includible in the aggregate value of clearances, and the assessee was not entitled to exclude them for the purpose of SSI exemption. The finding was against the assessee and in favour of the Revenue.

Ratio Decidendi: For computing eligibility under the SSI exemption notification, the value of branded goods manufactured in a rural area is includible in the aggregate value of clearances unless the notification expressly excludes it.

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