SSI exemption limits depend on inclusion of defence supplies and proof of duty-inclusive pricing for cum-duty benefit

Eligibility for Small Scale Industry exemption under Notification No. 8/2003-C.E. turned on whether defence supplies had to be included in aggregate clearances for the exemption limit. The text states that the issue had already been decided against the appellant in an earlier appeal, where defence supplies were treated as includible and no basis was found to interfere with the demand. It also states that cum-duty benefit was refused because there was no evidence that the price was duty-inclusive. On that basis, the appellant was found not entitled to SSI exemption for the disputed period and the appeal was dismissed.

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Issues: Whether the appellant was entitled to avail Small Scale Industry exemption under Notification No. 8/2003-C.E. dated 01.03.2003 for the disputed period.

Analysis: The issue was identical to one already decided against the appellant in its own earlier appeal. The earlier decision proceeded on the basis that defence supplies were includible in the clearances while computing the aggregate value for SSI benefit, and no ground was found to interfere with the demand. The request for cum-duty benefit was also not accepted in the absence of evidence that the price was inclusive of duty.

Conclusion: The appellant was not entitled to SSI exemption for the disputed period and the appeal was dismissed.

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