Slab exemption requires clubbing clearances from multiple units of the same manufacturer under the notification.

For a slab exemption applying to goods cleared by or on behalf of one manufacturer from one or more factories, clearances from multiple units of the same manufacturer must be aggregated. Authorities concerning genuine loan licencees or independent job workers were distinguished because the present case involved two units owned and operated by the same company. On that footing, the clearances of both units were rightly clubbed for eligibility under the notification, and the exemption claim failed.

---

---

Issues: Whether the clearances from two units belonging to the same manufacturer were required to be clubbed for determining eligibility to slab exemption under Notification No. 83/83-C.E. dated 1st March, 1983.

Analysis: The exemption language covered goods cleared "by or on behalf of a manufacturer from one or more factories". The earlier authorities cited on behalf of the assessee dealt with genuine loan licencees or independent job workers, where separate treatment of clearances depended on the distinct status of the manufacturing entities. Those authorities were distinguished because the present case involved two units owned by the same company and operated under the same manufacturer. The reasoning accepted that where the manufacturing activity is carried on by the same manufacturer through more than one factory, the clearances have to be aggregated for the purpose of the exemption slab.

Conclusion: The clearances of both units were rightly clubbed, and the exemption claim failed.

Final Conclusion: The appeal did not succeed, and the departmental view on aggregation of clearances for exemption was sustained.

Ratio Decidendi: For a slab exemption expressed to apply to clearances by or on behalf of one manufacturer from one or more factories, clearances from multiple units of the same manufacturer are to be aggregated.

---