SSI exemption for export clearances upheld where goods were not for home consumption and revenue neutrality supported the assessee.

Clearances made for export through a merchant exporter could not be denied SSI exemption under Notification No. 9/2003-C.E. because the concession was framed for clearances for home consumption up to the specified aggregate value, and the disputed goods were not cleared for home consumption. On the facts found, the Revenue's demand for differential duty was not sustainable, and the Tribunal also noted revenue neutrality. The denial of SSI exemption was therefore unjustified and the demand failed in favour of the assessee.

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Issues: Whether clearances made for export through a merchant exporter could be denied the benefit of SSI exemption under Notification No. 9/2003-C.E. and subjected to differential duty.

Analysis: The exemption under Notification No. 9/2003-C.E. was framed for clearances made for home consumption up to the specified aggregate value. The goods in dispute were cleared for export, not for home consumption. On the facts found, the Revenue's challenge to the concessional rate was not sustainable, and the Tribunal also noted that the matter was revenue neutral.

Conclusion: The denial of SSI exemption was not justified and the demand could not be sustained; the issue was decided in favour of the assessee.

Ratio Decidendi: A concession under an SSI exemption notification restricted to clearances for home consumption cannot be denied on export clearances where the factual and notification conditions do not support the demand.

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