COLLECTOR OF CENTRAL EXCISE,BARODA . vs M/S. M.M. KHAMBHATWALA

The Supreme Court addressed the classification of goods under the Central Excise Tariff, specifically Tariff Item 14F and Item 68, in relation to the exemption claimed by the respondents. The Court held that the total clearances of goods manufactured outside the factory premises must be included in the calculation of total clearances for determining eligibility for exemption under Notification No. 80/80-CE. Consequently, the Court upheld the decision of the Collector of Central Excise, which disallowed the exemption claimed by the respondents due to exceeding the Rs. 20 lakh threshold.