Chronological clearances under excise exemption notification were disputed, and the question of law was referred to the High Court.

The notification exemption under Notification No. 175/86-C.E. was disputed on whether the benefit up to the aggregate limit for each category of specified goods applied only to the first clearances made in chronological order. Revenue contended that once total clearances crossed the prescribed ceiling, the exemption could not be extended further, and the cited High Court view supported application only to first clearances in sequence rather than at the manufacturer's option. The Tribunal referred the question of law to the High Court for decision.

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Issues: Whether the benefit of Notification No. 175/86-C.E. dated 01.03.1986 was available up to the aggregate limit for each category of specified goods only on the first clearances made in chronological order.

Analysis: The order records the Revenue's contention that the exemption could not be extended beyond the aggregate limit once the total clearances crossed the prescribed ceiling, and notes the High Court view cited in support that the benefit of the notification is intended for first clearances in chronological sequence rather than for clearances selected at the manufacturer's option. On that basis, the Tribunal referred the question to the High Court for decision.

Outcome: The question of law was referred to the High Court.

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