Amended small-scale exemption notification covered Heading 93.05 clearances for threshold computation, supporting prima facie exemption relief.

An amended small-scale exemption notification inserted a proviso directing that clearances of goods under Heading 93.05 during 1 April 2001 to 30 September 2001 be counted when computing the aggregate value of nil-rate clearances under Notification No. 8/2001 for 2001-2002. On a plain reading, the amendment indicated that such goods were intended to fall within the exemption framework for that period, at least for threshold computation. The assessee therefore established a prima facie entitlement to the amended exemption, and pre-deposit of duty and penalty was waived with recovery stayed pending appeal.

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Issues: Whether the amended small-scale exemption notification, by insertion of the proviso through Notification No. 47/2001, prima facie extended the benefit of Notification No. 8/2001 to clearances of goods under Heading 93.05 for the period 1-4-2001 to 30-9-2001, warranting waiver of pre-deposit and stay of recovery.

Analysis: The inserted proviso expressly directed that clearances of goods falling under Heading 93.05 between 1st April, 2001 and 30th September, 2001 were to be taken into account while computing the aggregate value of clearances at nil rate of duty under the relevant serial of Notification No. 8/2001 for the financial year 2001-2002. On a plain reading, the amendment indicated that the Government intended the exemption framework to cover such goods for the disputed period, at least for the purpose of calculating the threshold limit under the notification.

Conclusion: The assessee made out a prima facie case for the benefit of the amended exemption notification, and pre-deposit of duty and penalty was waived with recovery stayed pending disposal of the appeal.

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