Aggregate clearance computation excludes clinical samples exempted on a month-wise basis under the relevant exemption notification.

Clinical samples exempted under Notification No. 48/77-C.E. were not required to be included in the aggregate value of clearances for eligibility under Notification No. 1/93-C.E. because the exclusion in Explanation II to Notification No. 1/93 applied only where the other exemption was granted on the basis of value or quantity of clearances made in a financial year. The clinical-sample exemption operated month-wise and was capped by reference to the preceding month's duty-paid clearances, so it was not a financial-year-based exemption. As a result, such exempt clearances remained outside the aggregate-value computation.

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Issues: Whether the value of clearances of clinical samples exempted under Notification No. 48/77-C.E. dated 1-4-1977 had to be included while computing the aggregate value of clearances for eligibility under Notification No. 1/93-C.E. dated 28-2-1993.

Analysis: Notification No. 1/93-C.E. excluded from the aggregate value of clearances those goods exempted by another notification, except where the exemption under such other notification was granted on the basis of the value or quantity of clearances made in a financial year. Notification No. 48/77-C.E. granted exemption to clinical samples in any month and limited the exempted quantity to 4% by value of the total duty-paid clearances of the preceding month. The exemption was thus not based on the value or quantity of clearances made in a financial year. The clinical samples therefore did not fall within the exclusion in Explanation II to Notification No. 1/93-C.E.

Conclusion: The exempted clinical samples under Notification No. 48/77-C.E. were not required to be added to the aggregate value of clearances for determining eligibility under Notification No. 1/93-C.E., and the assessee succeeded.

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