SSI exemption turnover computation includes value-based exempt clearances under a separate notification, not full-duty exemptions.

For SSI exemption under Notification No. 8/99-CE, clearances covered by Notification No. 5/99-CE had to be included in the aggregate value because the exclusion in paragraph 3(a) applied only to clearances exempt from the whole of excise duty, other than exemptions based on quantity or value of clearances. A value-based exemption under Notification No. 5/99-CE did not qualify for that exclusion, so those clearances could not be left out while computing aggregate turnover for SSI benefit.

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Issues: Whether, for the purpose of SSI exemption under Notification No. 8/99-CE, the value of goods cleared under Notification No. 5/99-CE was required to be included in the aggregate value of clearances.

Analysis: Paragraph 3(a) of Notification No. 8/99-CE excludes only those clearances which are exempt from the whole of excise duty, other than an exemption based on quantity or value of clearances. Notification No. 5/99-CE granted exemption at Serial No. 70 on the basis of value of clearances, and therefore such clearances did not fall within the exclusion contained in Notification No. 8/99-CE. The distinction between a full exemption and an exemption operating on value of clearances was material, and the clearances under Notification No. 5/99-CE could not be left out while computing the aggregate value.

Conclusion: The value of goods cleared under Notification No. 5/99-CE had to be included in the aggregate value for SSI exemption under Notification No. 8/99-CE, and the challenge failed.

Ratio Decidendi: Clearances exempted under a notification granting exemption on the basis of value of clearances are not excluded from the aggregate turnover computation for SSI exemption where the exclusion clause saves only clearances wholly exempt from duty other than such value-based exemptions.

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