SSI exemption on unbranded goods upheld where branded clearances were duty-paid and disclosure was made in returns.

Full-duty clearance of branded goods alongside SSI exemption on unbranded goods did not breach Notification No. 9/2003-CE where the assessee disclosed the clearance pattern in statutory returns and correspondence. The record showed that duty was paid on branded clearances and exemption was claimed only on unbranded clearances, so the notification condition was not violated. The omission to file a declaration was not treated as fatal because there was no contrary conduct suggesting misuse of the exemption. The assessee was therefore held entitled to the SSI exemption.

---

---

Issues: Whether the assessee violated the conditions of Notification No. 9/2003-CE dated 01.03.2003 by clearing branded goods at full duty while availing SSI exemption on unbranded goods, and whether the assessee remained entitled to the exemption.

Analysis: The assessee had disclosed the manner of clearances in statutory returns and correspondence, and the record showed that full duty was paid on branded clearances while exemption was claimed only on unbranded clearances. On these facts, the condition of the notification was not breached. The failure to file the declaration was not treated as fatal in the absence of any contrary conduct showing misuse of the exemption.

Conclusion: The assessee did not violate Notification No. 9/2003-CE dated 01.03.2003 and was entitled to the SSI exemption.

---