Exclusion of fully exempt clearances from aggregate turnover under Notification No. 80/80-C.E. enabled exemption for synthetic resins.

Clearances of solubilised vats removed under a full exemption notification were required to be excluded from the aggregate value of clearances under Notification No. 80/80-C.E. because the explanation to that notification disregarded goods exempted from the whole of duty under another operative exemption. Excluding those clearances brought the assessee below the prescribed monetary limit for the preceding financial year, so exemption for synthetic resins became available for the relevant year. The later deletion of solubilised vats from the exemption scheme had no retrospective effect and did not change their treatment for the earlier assessment period.

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Issues: Whether the value of solubilised vats cleared during the preceding year under a full exemption notification was to be excluded while computing the aggregate value of clearances for eligibility under Notification No. 80/80-C.E., and whether the assessee was entitled to exemption for synthetic resins for the relevant year.

Analysis: The clearances of solubilised vats were made without payment of duty under Notification No. 180/61-C.E. The relevant explanation to Notification No. 80/80-C.E. provided that clearances of specified goods exempted from the whole of duty under another notification in force were not to be taken into account for computing the aggregate value of clearances. On that basis, the value of solubilised vats had to be excluded. Once excluded, the assessee's clearances for the preceding financial year fell below the monetary limit prescribed in paragraph 4(i) of Notification No. 80/80-C.E. The later deletion of solubilised vats by Notification No. 106/82-C.E. was held to be without retrospective effect and did not alter their status for the earlier year.

Conclusion: The exclusion of the value of solubilised vats from the aggregate turnover computation was , and the assessee was entitled to exemption under Notification No. 80/80-C.E. for synthetic resins.

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