SSI exemption and export clearances: H Forms accepted as proof, so procedural lapse could not sustain the duty demand.

Clearances supported by H Forms were treated as exports for computing aggregate clearances under the SSI exemption, because the circular accepted Sales Tax documents as proof where exports were made by the unit or through merchant exporters directly from the unit. The Revenue's objection was confined to alleged non-compliance with excise procedure and intimation requirements, but that procedural lapse did not displace the established export character of the clearances. As the H Forms were not doubted or rebutted, those clearances were excluded from the aggregate value, the exemption threshold was not crossed, and the duty demand failed.

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Issues: Whether clearances supported by H Forms could be treated as exports for exclusion from aggregate clearances under the small-scale exemption notification, and whether the duty demand could be sustained despite alleged procedural noncompliance.

Analysis: The exemption notification granted SSI benefit for the first clearances up to the prescribed limit, and exports were not to be counted while computing that limit. The Board circular clarified that, for exempted units exporting themselves or through merchant exporters directly from the unit, Sales Tax documents such as H Form would be accepted as proof of export. The Revenue's objection was only that the prescribed excise procedure and intimation requirements had not been followed. Since the issuance of H Forms was not doubted or rebutted, the exports were treated as established, and the alleged procedural lapse did not justify inclusion of such clearances in the taxable aggregate.

Conclusion: The clearances evidenced by H Forms were excluded from the aggregate value, the exemption limit was not crossed, and the duty demand was unsustainable.

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