Exemption under Notification No. 89/79 cannot be denied by clubbing clearances across different tariff items.

Clearances of goods falling under Tariff Item 68 could not be clubbed with clearances of goods under other tariff items to deny exemption under Notification No. 89/79. The exclusion in the notification was treated as unambiguous, so only clearances attributable to Tariff Item 68 were relevant for the exemption test. The fact that the goods were produced on the same machinery did not justify aggregation where the clearances and their tariff classification were known. On that basis, clubbing was impermissible and the exemption remained available.

---

---

Issues: Whether clearances of goods falling under Tariff Item 68 could be clubbed with clearances of goods falling under other tariff items for denying the benefit of exemption under Notification No. 89/79.

Analysis: The exclusion in the exemption notification was held to be clear: goods manufactured under other tariff items were not to be included while computing the clearances of goods falling under Tariff Item 68. The Department's attempt to aggregate clearances of different tariff items was rejected, and the fact that the goods arose from the same machinery did not alter the legal position where the clearances and their nature were known.

Conclusion: The clubbing of clearances was impermissible and the assessee was entitled to the exemption under Notification No. 89/79.

---