2004 (12) TMI 143

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..... lowing exemption under Notification No. 8/99. Notification No. 8/99 granted full exemption to "first clearances up to an aggregate value not exceeding fifty lakhs rupees made on or after the first day of April of any financial year" and partial exemption (5%) in respect of "clearances up to an aggregate value not exceeding fifty lakh rupees immediately following the first clearances." The exemption is in respect of clearances of "excisable goods of the description specified in the Annexure" to the Notification. While the adjudicating authority took the view that goods exempted under Notification No. 5/99 are also to be included to determine, "first clearances" and "the clearances immediately following the first clearances" etc., under Notif .....

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..... xure that goods which are chargeable to "nil" rate of duty or "five percent ad valorem" under this notification are the goods specified in the Annexure to this notification itself and not goods which are exempt under some other notification. Table of exempted clearance is reproduced below :- Sl. No. Value of clearances Rate of duty 1 2 3 1 First clearances upto an aggregate value not exceeding fifty Lakh rupees made on or after the 1st day of April in any financial year Nil 2 Clearances upto an aggregate value not exceeding fifty Lakh rupees immediately following the clearances specified against S. No. 1 above during the financial year Five per cent Ad valore .....

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..... exemption is available only if the aggregate value of clearances of all excisable goods "does not exceed Rs. 300 Lakhs in the preceding financial year". Thus, aggregate value of clearances is relevant only for determining the clearances of all excisable goods while clearances of specified goods alone are relevant for grant of exemption. 6. An interpretation along the above lines alone can reach the benefit of the exemption contemplated in Notification No. 8/99 to Small Scale Industry. The view canvassed by the Revenue in the present appeals would imperil the exemption. The two markers under Notification No. 8/99 are (i) that manufacturers with an aggregate value of clearances of Rs. 300 Lakhs are not eligible for the exemption at all [Sl. .....

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