Exemption ceiling computation excludes sawn timber where it is not a separate excisable commodity

For computing the aggregate value of clearances under Notification No. 80/80-C.E., sawn timber obtained from sawing timber logs was not to be treated as a separate excisable commodity. The Tribunal applied its earlier view in the same matter and rejected the contention that the emergence of a by-product automatically made the main product a new excisable article. On that basis, the value of sawn timber was excluded from the exemption ceiling computation, leaving the assessee entitled to the consequential exemption relief.

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Issues: Whether sawn timber was required to be included in the aggregate value of clearances for the purpose of the Rs. 20 lakhs ceiling under Notification No. 80/80-C.E. dated 19-6-1980.

Analysis: The Tribunal held that the case was covered by its earlier order in the appellants' own matter and by its decision that sawn timber obtained by sawing timber logs was not to be treated as a separate excisable article for the ceiling computation. It found no reason to re-examine that view and rejected the argument that the existence of a by-product necessarily meant that the main product was also a new excisable commodity. On that basis, the value of sawn timber had to be left out while applying the exemption ceiling.

Conclusion: Sawn timber valued at Rs. 6,36,482.73 was excluded from the ceiling computation, and the appellants were entitled to the consequential exemption relief.

Ratio Decidendi: For applying an exemption notification ceiling based on aggregate value of clearances, goods which are not treated as a separate excisable commodity on the settled view of the Tribunal are not to be included in the computation merely because they arise in the course of processing and a by-product is also produced.

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