Exemption notification scope: wholly exempt goods under one notification could not be treated as specified goods under another.

Notification No. 8/99 confined exemption to clearances of specified goods listed in its Annexure, which excluded goods chargeable to nil duty or wholly exempt from duty. The clause excluding exempt clearances applied only to computation of aggregate turnover threshold and did not extend to treating separately exempt goods as specified goods for the exemption table. Goods wholly exempt under Notification No. 5/99 therefore could not be included as specified goods under Notification No. 8/99, and the assessee's exclusion of such goods was upheld.

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Issues: Whether goods exempted under another notification were required to be included while computing eligibility and exemption benefits under Notification No. 8/99.

Analysis: Notification No. 8/99 granted exemption only to clearances of goods described as specified goods in its Annexure, and the Annexure itself excluded goods chargeable to nil rate of duty or wholly exempt from duty. The clause dealing with exclusion of exempt clearances for determining aggregate value of clearances operated for the purpose of the aggregate turnover threshold and did not govern the classification of first clearances or clearances immediately following them under the notification. On that construction, goods wholly exempt under Notification No. 5/99 could not be treated as specified goods for the exemption table under Notification No. 8/99.

Conclusion: The Revenue's appeals lacked merit and the exclusion of goods exempt under Notification No. 5/99 from the computation under Notification No. 8/99 was upheld, in favour of the assessee.

Ratio Decidendi: Where an exemption notification limits relief to specified goods defined in its own Annexure, goods wholly exempt under a different notification are not to be treated as specified goods for the exemption table, though they may be relevant for computing aggregate turnover where the notification so provides.

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