Aggregate clearance computation under excise exemption notifications excludes fully exempt goods, preserving small-scale relief eligibility.

For Notification No. 56/88-C.E., Explanation II required aggregate clearance value to be computed without including excisable goods exempted from the whole of duty under another notification. The notification itself governed the computation, and exempt clearances could not be counted toward the aggregate limit. The Tribunal's reading was treated as unclear to the extent it introduced restrictions not found in the notification, particularly in relation to units undertaking job work and seeking small-scale exemption benefits. On that construction, excluded exempt clearances did not affect the threshold, and relief followed for the assessee.

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Issues: Whether, for the purpose of Notification No. 56/88-C.E., the aggregate value of clearances had to include clearances of excisable goods exempted by another notification.

Analysis: Explanation II to Notification No. 56/88-C.E. provided that, while computing the aggregate value of clearances under that notification and any other notification, the clearances of excisable goods exempted from the whole of the duty of excise by another notification were not to be taken into account. The Tribunal's approach was found to be unclear insofar as it appeared to import restrictions not borne out by the notification, particularly against units undertaking job work for smaller unit exemption benefits. The notification itself controlled the computation, and exempt clearances could not be counted for the aggregate limit.

Conclusion: The aggregate value of clearances was not required to be taken into account for the purpose of Notification No. 56/88-C.E., and the assessee was entitled to relief.

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