Form-H proof of export excludes merchant-exporter clearances from SSI exemption turnover computation.

Form-H or equivalent sales tax documents can be accepted as proof of export where clearances are made directly by the exempt unit or through merchant exporters, and such export clearances are excluded from the aggregate value used to deny SSI exemption under Notification No. 8/2003-CE. On the facts, the assessee produced the relevant Form-H documents, the exports were treated as established, and the denial of SSI exemption could not be sustained.

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Issues: Whether export clearances made through merchant exporters against Form-H were to be excluded while computing the aggregate value of clearances for denial of SSI exemption under Notification No. 8/2003-CE.

Analysis: The dispute turned on whether the appellant's clearances supported by Form-H could be treated as export clearances for the purpose of SSI exemption. The Board's circular clarified that Form-H or equivalent sales tax documents could be accepted as proof of export where the exempted unit undertook exports itself or through merchant exporters directly. The Tribunal relied on earlier decisions which had accepted Form-H as sufficient proof of export and had held that such clearances were not to be included in the aggregate value of clearances when the export was established. On the facts, the appellant produced the relevant Form-H documents and the export clearances were found to be substantively covered by the circular.

Conclusion: The export clearances were required to be excluded from the aggregate value of clearances, and the denial of SSI exemption could not be sustained; the issue is decided in favour of the assessee.

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