Home consumption exemption does not extend to exports, so small scale unit concession was unavailable.

An exemption under Notification No. 175/86 was confined to specified goods cleared for home consumption, and that expression was held not to cover exports. Goods exported to Nepal therefore did not satisfy the notification's condition for small scale unit clearances and could not claim the concession. On that construction, the exemption was unavailable to the exported goods and the departmental demand was confirmed.

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Issues: Whether goods exported to Nepal were eligible for exemption under Notification No. 175/86 for the purpose of small scale unit clearances.

Analysis: The exemption was confined to specified goods cleared for home consumption. Home consumption is distinct from export, and the word used in the notification was understood in that limited sense. Since the admitted position was that the goods were exported to Nepal, they did not answer the description of goods cleared for home consumption and could not qualify for the concession.

Conclusion: The exemption was not available to the exported goods and the demand was rightly confirmed against the assessee.

Final Conclusion: The appeal failed on the sole substantive issue and the departmental demand was sustained.

Ratio Decidendi: An exemption notification limited to goods cleared for home consumption does not extend to goods exported outside India, even if the exporter is otherwise entitled to small scale unit benefits.

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