SSI exemption fails where aggregate clearances are miscomputed and alleged job work is not substantiated.

SSI exemption was denied because the assessee did not correctly compute aggregate clearances by including the full value of goods manufactured and cleared, and also failed to prove that the disputed amounts represented genuine job work. In the absence of supporting evidence, the lower authorities' finding that the clearances had been wrongly calculated was sustained. On that basis, the claim to small scale industry exemption failed and the rejection of the exemption claim was upheld.

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Issues: Whether the assessee was entitled to small scale industry exemption for the relevant financial years under the applicable notifications despite non-inclusion of the correct value of goods and failure to establish that the disputed activity was job work.

Analysis: The record showed that the assessee had not correctly included the value of goods manufactured and cleared while computing aggregate clearances. The assessee also failed to substantiate that the value attributed to job work was job work. In the absence of supporting evidence, the lower authorities' finding that the aggregate value of clearances had been wrongly calculated was upheld, which defeated the claim to SSI exemption.

Conclusion: The assessee was not entitled to SSI exemption and the rejection of the claim was sustained.

Final Conclusion: The appeal failed and the impugned order was left undisturbed, resulting in rejection of the assessee's challenge.

Ratio Decidendi: SSI exemption is unavailable where the assessee fails to correctly compute aggregate clearances and cannot prove the disputed amounts were genuinely job work.

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