Brand name exclusion in SSI turnover computation confirmed where the notification's plain wording controls exemption eligibility.

Clearances of goods bearing another person's brand name had to be excluded from aggregate turnover under the small scale exemption notification because paragraphs 3A(b) and 4 expressly treated such branded clearances as ineligible for exemption. The plain wording of the notification left no room to distinguish between branded goods that were dutiable and branded goods that were exempt or nil-rated, as no such limitation was stated. Earlier Tribunal decisions adopting the same interpretation were followed. On that construction, branded clearances were left out of the computation for SSI threshold purposes, and the assessee was entitled to SSI exemption.

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Issues: Whether clearances of goods bearing the brand name of another person were to be excluded while computing the aggregate value of clearances under the small scale exemption notification, and whether the assessee was entitled to SSI exemption.

Analysis: The exemption notification provided that clearances bearing the brand name or trade name of another person, which were ineligible for exemption under paragraph 4, were not to be taken into account for determining the aggregate value of clearances. The Court applied the plain language of paragraphs 3A(b) and 4 and held that no distinction could be read into the notification between dutiable branded goods and branded goods cleared as exempt or nil-rated, when such a distinction was not expressed in the notification. Reliance was placed on earlier Tribunal decisions taking the same view that branded clearances falling within the exclusion had to be left out of the turnover computation.

Conclusion: The branded clearances were required to be excluded from the aggregate value of clearances, and the assessee was entitled to SSI exemption.

Final Conclusion: The assessee succeeded on merits, and the Revenue's challenge failed.

Ratio Decidendi: An exemption notification must be construed according to its plain wording, and where it expressly excludes branded clearances ineligible under the notification, no additional limitation or distinction can be implied into the turnover computation.

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