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2016 (2) TMI 484 - HC - Central ExciseUnconstitutionality of Explanation Clause (G) to SSI Notification No.8 of 2003 - Exports to Nepal in SSI exemption - notification discriminatory - Held that:- For the purpose of SSI exemption under said notification No.8/2003, however, it would continue to be treated as clearances for home consumption. This will be plainly discriminatory vis-a-vis other SSI units who might be having exports to countries other than Nepal as compared to the SSI units like the petitioners whose substantial exports may be to Nepal. Under such circumstances, the former set of SSI units would claim total exclusion of all clearances made by them to all countries while computing exemption limit under notification No.8/2003, whereas the later would be subjected to inclusion of value of exports made to Nepal for computation of such limit. Since with effect from 01.03.2012 exports to Nepal are put at par with exports to other countries, the petitioners and other SSI units making exports to the countries other than Nepal form a homogeneous class. Both sets of manufacturers are SSI units. Both export their goods to various countries. There cannot be further sub-classification of SSI units exporting to Nepal and those SSI units exporting to the countries other than Nepal since after 01.03.2012 the distinction has been obliterated. This distinction which was prevalent till 01.03.2012 lost its relevance on account of change of the Government of India policy. Continued reference of exports to Nepal in SSI exemption notification No.7/2003 would render, to that extent, such notification discriminatory and, therefore, violative of Article 14 of the Constitution. Under the circumstances, the portion “and Nepal” appearing in Explanation Clause (G) to SSI Notification No.8 of 2003 is declared unconstitutional with effect from 01.03.2012.
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