Specific exemption clause controls excise eligibility for multi-item manufacturers, preserving the assessee's entitlement to relief.

An exemption notification under excise law was construed by applying the specific clause governing manufacturers producing goods under more than one tariff item. Because the assessee manufactured specified goods as well as other excisable goods, and the aggregate clearances did not exceed the limit relevant to that category, the exemption remained available. The broader disqualification tied to a different factual category could not be used to deny relief. The assessee was therefore entitled to the exemption under Notification No. 71/78, and the Revenue's challenge failed.

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Issues: (i) Whether the respondent-assessee was entitled to the exemption from excise duty under Notification No. 71/78 dated 01.03.1978, and whether the case fell under the clause dealing with manufacturers of goods under more than one tariff item.

Analysis: The exemption notification prescribed different disqualifications, including a separate condition for manufacturers producing excisable goods falling under more than one item number of the First Schedule and another condition tied to the aggregate value of specified goods cleared in the preceding financial year. The respondent manufactured specified goods as well as other excisable goods, and the aggregate clearance did not exceed the limit relevant to the clause applicable to such multi-item manufacturers. The reasoning adopted in the earlier judgment followed the construction that where the manufacturer produced goods under more than one item, the specific clause governing that situation controlled the exemption claim.

Conclusion: The respondent was entitled to the exemption under Notification No. 71/78, and the Revenue's challenge failed.

Final Conclusion: The appeal was dismissed and the assessee's entitlement to the exemption was upheld.

Ratio Decidendi: Where an exemption notification contains a specific clause governing manufacturers of excisable goods falling under more than one item, that specific clause determines eligibility, and the exemption cannot be denied by applying a different clause meant for another factual category.

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