Duty-paid Nepal clearances did not bar later small-scale exemption benefit under Notification No. 1/93-C.E.

Clearances to Nepal made on payment of duty under Notification No. 1/93-C.E. did not fall within paragraph 4 of the notification and therefore did not forfeit the small-scale manufacturer's entitlement to claim the exemption on later clearances. The Tribunal applied its earlier view that such duty-paid Nepal clearances were outside the disqualifying condition in paragraph 4, so the prior exports did not disentitle the assessee from subsequent benefit under the small-scale exemption scheme.

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Issues: Whether a small-scale manufacturer availing the benefit of Notification No. 1/93-C.E. dated 28-2-93 became disentitled to that benefit for subsequent clearances because earlier exports to Nepal were made on payment of duty under paragraph 4 of the notification.

Analysis: The Tribunal followed its earlier decision holding that clearances to Nepal on payment of duty were not covered by paragraph 4 of Notification No. 1/93-C.E. and, therefore, such clearances did not forfeit the manufacturer's eligibility to claim the notification benefit on later clearances. The same legal position governed the present appeals.

Conclusion: The clearance to Nepal on payment of duty did not disentitle the appellants from availing the small-scale exemption for subsequent clearances.

Ratio Decidendi: Where exports or clearances to Nepal are made on payment of duty and are not covered by paragraph 4 of Notification No. 1/93-C.E., such clearances do not destroy entitlement to the small-scale exemption for later clearances.

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