Brand-name clearances excluded from aggregate turnover for exemption threshold under Notification No. 175/86-C.E.

Clearances of goods bearing another person's brand name, made under paragraph 7 of Notification No. 175/86-C.E., were treated as outside the exemption scheme for computing aggregate clearances. The Tribunal followed its earlier view that such branded clearances could not be reckoned under paragraph 1 for determining the monetary threshold for exemption eligibility. Accordingly, the value of those branded goods was excluded from the aggregate clearances, and the Revenue's challenge failed.

---

---

Issues: Whether the value of goods bearing another person's brand name, cleared on payment of duty under paragraph 7 of Notification No. 175/86-C.E., was required to be included in computing the aggregate clearances for exemption eligibility.

Analysis: Goods cleared under paragraph 7 as branded goods were treated as outside the scope of the exemption notification for the purpose of the aggregate value computation. The Tribunal followed its earlier view that such clearances could not be reckoned under paragraph 1 for determining the monetary threshold, and that the branded goods were to be excluded from the aggregate clearances.

Conclusion: The value of such branded clearances was not to be included in the aggregate clearances for the notification threshold, and the Revenue's challenge failed.

Ratio Decidendi: Clearances of branded goods specifically excluded from the exemption scheme under the notification cannot be counted while computing aggregate clearances for eligibility under that notification.

---