Deemed export clearances cannot be added to SSI exemption turnover unless the notification expressly includes them.

Notification No. 1/93-C.E. computed SSI exemption eligibility by reference to clearances for home consumption and expressly included specified export categories such as Nepal and Bhutan. Deemed export supplies, although treated as exports under export policy by legal fiction, did not amount to clearances for home consumption. Because the notification did not expressly include deemed exports, their value was excluded from aggregate clearances for the exemption limit, and relief followed from that exclusion.

---

---

Issues: Whether the value of goods cleared under the deemed export scheme was required to be included while computing aggregate clearances for eligibility under Notification No. 1/93-C.E.

Analysis: Notification No. 1/93-C.E. governed exemption for an SSI unit and computed aggregate clearances with reference to excisable goods cleared for home consumption, while also specifically including exports to Nepal and Bhutan. The deemed export supplies, though not physically leaving India, were treated by the export policy as exports by a legal fiction and were not clearances for home consumption. Since the notification did not specifically include deemed exports, and the notification expressly mentioned other categories of export, the omission was treated as significant. In the absence of express inclusion, the value of deemed exports could not be added to the aggregate clearances for the exemption limit.

Conclusion: The value of deemed exports was not liable to be included in computing the aggregate value of clearances under Notification No. 1/93-C.E., and the assessee was entitled to relief.

Final Conclusion: The exemption computation had to exclude deemed export clearances, and the demand based on their inclusion was set aside.

Ratio Decidendi: Where an exemption notification computes clearances by reference to home-consumption clearances and expressly includes only specified export categories, a category not expressly included and not amounting to home-consumption clearance cannot be read into the notification by implication.

---