Aggregate clearance value for exemption excludes duty-paid loan licencee supplies when assessing concessional eligibility.

Clearances of P & P medicaments manufactured for loan licencees and removed on payment of duty at tariff rates were not includible in the aggregate value of clearances for exemption eligibility. The exemption notifications excluded goods bearing the brand name or trade name of another person who was ineligible for exemption, and the settled position applied here was that duty-paid clearances made on behalf of loan licencees could not be added to the assessee's turnover for denying concessional treatment. On that basis, the attempted exclusion of the benefit was unsustainable.

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Issues: Whether the clearances of P & P medicaments manufactured on behalf of loan licencees and cleared on payment of duty at tariff rates were required to be included in the aggregate value of clearances for determining eligibility to the concessional rate under the exemption notifications.

Analysis: The exemption notifications provided that, for computing aggregate value of clearances, goods cleared bearing the brand name or trade name of another person who was ineligible for exemption were not to be taken into account. The goods manufactured for loan licencees were admittedly cleared on full payment of duty, and the settled position was that such clearances were not to be added while determining the total value of clearances for exemption purposes. The cited departmental and judicial material did not justify inclusion of those clearances in the assessee's turnover for denying the benefit.

Conclusion: The clearances made on behalf of loan licencees were not includible in the aggregate value of clearances, and the denial of exemption was unsustainable.

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