Total clearances govern concessional duty eligibility where the exemption notification excludes no category, including bonded processing removals.

Where an exemption notification fixed eligibility for concessional duty by reference to five per cent of total clearances and did not exclude any category, clearances sent under bond for further processing had to be counted in the total. Excluding them would be contrary to the notification and arbitrary, because the expression "clearance" was treated as synonymous with "removal". The concessional treatment based on all clearances was therefore upheld and the Revenue's challenge failed.

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Issues: Whether, for the purpose of computing the 5% quantity eligible for concessional duty under Notification No. 6/88, clearances sent under bond for further processing were to be excluded.

Analysis: The notification prescribed a concessional rate for fents and rags and capped the eligible quantity at five per cent of the total quantity of clearances. Since the notification did not exclude any category of clearances, and because wastage and damage may occur at different stages of manufacture and processing, excluding clearances for further processing would be contrary to the notification and arbitrary. The expression "clearance" was also understood as synonymous with "removal".

Conclusion: The clearances for further processing under bond were required to be included while computing the five per cent eligible quantity, and the Revenue's challenge failed.

Final Conclusion: The impugned order granting the concessional treatment on the basis of all clearances was upheld, and the Revenue's appeal was rejected.

Ratio Decidendi: Where an exemption notification fixes eligibility by reference to total clearances without excluding any category, all clearances must be counted, and the term "clearance" is to be read as synonymous with "removal".

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