Notification interpretation on clearance slab: benefits under separate exemptions cannot be clubbed to reduce the available exemption.

Notification No. 75/87-C.E. and Notification No. 1/93-C.E. were held to operate in different fields. Explanation II to Notification No. 75/87-C.E. applies only to computing aggregate clearances for the eligibility condition in para 3(b) and cannot be stretched to cut down the substantive exemption in para 1. Clearances availing Notification No. 1/93-C.E. may be counted for overall eligibility where required, but they are not to be treated as clearances of the specified goods under Notification No. 75/87-C.E. for slab computation. On that basis, clearances under Notification No. 1/93-C.E. were not added to the clearances of refrigerating and air-conditioning machinery for the 15 lakh slab, and the exemption remained available.

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Issues: Whether clearances availing benefit under Notification No. 1/93-C.E. were required to be clubbed with clearances under Notification No. 75/87-C.E. for computing the clearance slab under the latter notification.

Analysis: Notification No. 75/87-C.E. and Notification No. 1/93-C.E. operate in different fields. Explanation II to Notification No. 75/87-C.E. is confined to computation of aggregate value of clearances for the eligibility condition in para 3(b) of that notification and cannot be extended to reduce the substantive benefit granted by para 1. The explanation cannot be interpreted so as to deny exemption beyond what the notification itself grants. Clearances under Notification No. 1/93-C.E. are therefore relevant for computing aggregate value of all excisable goods for eligibility, but not for treating them as clearances of the specified goods under Notification No. 75/87-C.E. when calculating the slab applicable to those goods.

Conclusion: The clearances under Notification No. 1/93-C.E. were not to be added to the clearances of refrigerating and air-conditioning machinery for determining the 15 lakh slab under Notification No. 75/87-C.E.; the assessee remained eligible for the exemption.

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