Clearance-based exemption under Notification No. 1/93-C.E. applies until the threshold is crossed, with duty only on the excess value.

Notification No. 1/93-C.E. was applied on the basis of the value of clearances of the specified goods up to the prescribed aggregate exemption limit. The Tribunal's settled view was that the benefit attaches to the value of goods cleared, and excise duty becomes payable only on the portion exceeding the threshold. On that approach, the Commissioner (Appeals) found no infirmity in extending the exemption for the oil furnace boiler clearance, and the Revenue challenge failed.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 1/93-C.E. dated 28-2-1993 in respect of clearance of one oil furnace boiler and liable to duty only on the value exceeding the exemption limit.

Analysis: The exemption under the notification was to be determined with reference to the value of clearances of the specified goods up to the prescribed aggregate limit of Rs. 30 lakhs. The settled view of the Tribunal was that the benefit was available on the value of the goods cleared, and duty became payable only on the value beyond the exemption threshold. The Commissioner (Appeals) had followed that consistent line of Tribunal decisions, and no infirmity was shown in that approach.

Conclusion: The assessee was entitled to the notification benefit, and the Revenue appeal failed.

Ratio Decidendi: Exemption under the notification is governed by the value of clearances of the specified goods, and duty is chargeable only on the portion exceeding the prescribed exemption limit.

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