2004 (11) TMI 445 - AT - Central Excise

Summary

Issues:
- Disallowance of benefit of Notification No. 9/2000-C.E. due to failure to exercise option in writing
- Filing of declaration under Rule 173B for availing exemption
- Clearance of goods on payment of Tariff rate of duty indicating non-availment of exemption
- Conditions specified in Notification No. 9/2000-C.E. for concessional rate of duty and the requirement to exercise the option in writing

Analysis:

The appeal was filed against the Order-in-Appeal disallowing the benefit of Notification No. 9/2000-C.E. on the grounds of not exercising the option in writing as required by the Notification. The appellant, a manufacturer of HDPE pipes, had filed a declaration under Rule 173B claiming the exemption. The appellant's advocate argued that the filing of this declaration should suffice the condition of filing for availing the benefit of the exemption, citing a previous Tribunal case as precedent.

The Departmental Representative contended that the appellant had cleared goods by paying the Tariff rate of duty during a specific period, indicating non-availment of the exemption. However, the Tribunal noted that the Notification required the manufacturer to exercise the option in writing, and the option once exercised could not be withdrawn for the remaining part of the financial year. The appellant had filed a classification declaration on 1-4-2000 specifically mentioning their intention to avail the benefit of Notification No. 9/2000-C.E., which was duly received by the Department. Additionally, a classification declaration highlighting the benefit of the Notification was also submitted. Based on these facts, the Tribunal concluded that the option had indeed been exercised by the appellant, overturning the impugned order and allowing the appeal with any consequential relief.

In summary, the Tribunal's decision emphasized the importance of fulfilling the conditions specified in Notification No. 9/2000-C.E., particularly the requirement to exercise the option in writing for availing the concessional rate of duty. The filing of a declaration under Rule 173B was considered sufficient to meet this condition, and the appellant's actions were deemed compliant with the Notification, leading to the allowance of the appeal and potential consequential relief.