SSI exemption denied prematurely where earlier exemption proceedings remained unresolved and affected aggregate clearance valuation.

SSI exemption under Notification No. 01/1993-CE could not be denied conclusively while the assessee's entitlement under Notification No. 202/88-CE for an earlier period remained undecided, because the earlier clearances could affect the aggregate value relevant to the SSI threshold. As the record did not show final adjudication of the earlier exemption notices, determination of later-period SSI eligibility was premature. The impugned order was therefore unsustainable and the matter was remanded to the Adjudicating Authority for fresh adjudication after first ascertaining the outcome of the earlier proceedings.

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Issues: Whether the denial of SSI exemption under Notification No. 01/1993-CE was sustainable when the eligibility of the assessee under Notification No. 202/88-CE for an earlier period was still pending adjudication.

Analysis: The demand for the relevant period depended upon whether the clearances covered by Notification No. 202/88-CE were liable to be included in the aggregate value of clearances for the purpose of the SSI threshold. The record did not show that the show cause notices relating to entitlement under Notification No. 202/88-CE had been finally decided. In the absence of that determination, the conclusion on eligibility to SSI exemption for the later period could not be reached conclusively. The matter therefore required reconsideration after first ascertaining the status of the earlier proceedings.

Conclusion: The issue was decided in favour of the appellant to the extent that the impugned order was unsustainable and the matter had to be remanded for fresh adjudication.

Final Conclusion: The impugned order was set aside and the dispute was sent back to the Adjudicating Authority for reconsideration after determining the outcome of the earlier exemption notices.

Ratio Decidendi: Where the later demand is contingent upon the unresolved outcome of prior proceedings affecting the aggregate value of clearances, adjudication on SSI eligibility is premature and the matter must be remanded for fresh decision.

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