Value-based exemption clearances must be included in small scale threshold computation under the exemption scheme.

Clearances exempted under a notification based on the value of clearances are not excluded when computing the aggregate value of clearances for home-consumption under the small scale exemption scheme. The relevant paragraph excludes only clearances exempt from excise duty under another notification or clearances on which no duty is payable, but expressly excepts exemptions founded on quantity or value of clearances. As the other notification was value-based, those clearances had to be counted for threshold purposes, and the claimed exclusion was unavailable.

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Issues: Whether clearances made under an exemption notification based on the value of clearances were liable to be excluded while computing the aggregate value of clearances for home consumption under the small scale exemption notification.

Analysis: Paragraph 3 of the small scale exemption notification excludes only those clearances that are exempt from excise duty under another notification or on which no duty is payable, but specifically carves out exemptions based on quantity or value of clearances. The other notification in question granted exemption on the basis of the value of clearances, and therefore fell within the express exception to exclusion. Those clearances could not be left out while determining the aggregate value of clearances for the threshold under the small scale exemption notification.

Conclusion: The clearances under the value-based exemption notification were correctly included in computing the aggregate value of clearances, and the assessee was not entitled to the claimed exclusion.

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