Export clearances to Nepal counted in home consumption value under the exemption notification, regardless of payment mode.

Explanation V to Notification No. 1/93-C.E. treated clearances for export to Bhutan or Nepal as part of clearances for home consumption. Because the language was clear and unqualified, no distinction could be read in between exports to Nepal against rupee payment and exports against foreign exchange payment. The value of such Nepal exports therefore had to be included in the aggregate value of clearances for home consumption, and the contrary contention was rejected.

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Issues: Whether the value of exports to Nepal made against foreign exchange payment was required to be included in the aggregate value of clearances for home consumption under Explanation V to Notification No. 1/93-C.E. dated 28-2-1993.

Analysis: Explanation V provided that, for the purposes of the notification, clearances for home consumption shall also include clearances for export to Bhutan or Nepal. The language of the provision was found to be clear and unqualified, and it did not make any distinction between exports to Nepal against rupee payment and exports to Nepal against foreign exchange payment. In such a case, nothing could be added to or read into the notification to create a distinction not found in its terms.

Conclusion: The value of exports to Nepal had to be included in the computation of clearances for home consumption irrespective of the mode of payment, and the assessee's contrary contention was rejected.

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