Exempt goods remain excisable goods for threshold computation under a small-scale exemption notification.

A fully exempted product does not lose its character as excisable goods merely because no duty is payable under one notification. On that reasoning, clearances of the exempted Thinner had to be included when computing aggregate clearances of excisable goods for the threshold under Notification No. 80/80-C.E. The Tribunal preferred the view that exemption from duty affects chargeability, not the excisable nature of the commodity, and therefore the appellants could not exclude those clearances from the prescribed turnover computation.

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Issues: Whether goods fully exempted under one notification cease to be excisable goods for the purpose of computing aggregate clearances under another exemption notification.

Analysis: The Tribunal considered conflicting High Court views on whether a product, once fully exempted from duty by notification, remains excisable for computing the value of clearances of all excisable goods in the preceding financial year. It preferred the line of authority holding that exemption from duty does not alter the character of the commodity as excisable goods. On that basis, clearances of the fully exempted Thinner were includible in the aggregate turnover for the exemption threshold under Notification No. 80/80-C.E.

Conclusion: Fully exempted goods continue to be excisable goods, and their clearances are includible in the threshold computation. The appellants were not entitled to the benefit of Notification No. 80/80-C.E.

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