Small Scale Industry exemption upheld for OEM clearances because binding precedent barred inclusion in aggregate turnover.

The Tribunal held that the assessee remained entitled to Small Scale Industry exemption under Notification No. 1/93-CE, as amended, for clearances made to original equipment manufacturers, because the issue was already covered by a Supreme Court ruling in the assessee's own case. On that binding precedent, the contrary demand based on inclusion of those clearances in the aggregate value could not be sustained, and the appeal was allowed. The Tribunal therefore did not examine limitation or re-quantification.

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Issues: Whether the assessee was entitled to Small Scale Industry exemption under Notification No. 1/93-CE dated 28.02.1993, as amended, in respect of clearances made to original equipment manufacturers and whether the value of such clearances was includible in the aggregate value for the financial year.

Analysis: The Tribunal noted that the controversy stood covered by the Supreme Court decision in the same assessee's case, which held that the assessee was entitled to the exemption under Notification No. 1/93-CE as amended by Notification No. 59/94-CE. In view of that binding decision, the impugned order could not survive. The Tribunal therefore did not enter into the remaining questions relating to limitation or re-quantification.

Conclusion: The assessee was held entitled to the exemption and the value of the clearances to original equipment manufacturers could not be used to deny the benefit; the appeal was allowed.

Ratio Decidendi: Where the Supreme Court has already held that the assessee is entitled to the relevant SSI exemption, the contrary order based on inclusion of the same clearances in aggregate turnover cannot be sustained.

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