Small scale exemption turnover must exclude non-BIS pumps outside the notification's scope and covered goods alone count.

For computing the aggregate value of clearances under Notification No. 8/2003-CE, only goods covered by the notification can be included in the exemption turnover. Power-driven submersible pumps not conforming to BIS standards fell outside the notification's scope, so their value could not be counted toward the small scale exemption threshold. The notification had to be read with its relevant paragraph, table and annexure, which restricted the aggregate turnover to excisable goods matching the specified description. On that basis, exclusion of the non-BIS pumps from turnover computation was correct and the refund claim was maintainable.

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Issues: Whether, for computing the aggregate value of clearances for small scale exemption under Notification No. 8/2003-CE dated 01.03.2003, the value of non-BIS submersible pumps, which were not covered by the notification, could be included in the turnover.

Analysis: The exemption notification applied to goods of Chapter 84, but expressly excluded power driven pumps not conforming to BIS standards. For deciding the threshold of first clearances up to the prescribed aggregate value, only goods covered by the notification could be taken into account. Since the non-BIS pumps were outside the scope of the exemption and were cleared on payment of duty, their value could not be counted while computing the exemption limit. A combined reading of the relevant paragraph, table, and annexure showed that the aggregate turnover had to be restricted to excisable goods of the description specified in the annexure.

Conclusion: The exclusion of non-BIS pumps from the turnover computation was correct, and the refund claim was maintainable. The appeal was allowed with consequential relief.

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