2014 (8) TMI 885 - AT - Central Excise

Concessional rate of duty provided under notification No. 24/91-CE dated 25.7.91 - Assesee filed classification list claiming the effective rate of duties in terms of notification No. 1/93-CE dated 28.2.93 - Held that - After enjoying the benefit of notification No. 1/93 up to clearance of ₹ 50 lakhs, the assessee chooses to avail of the benefit of Notification No. 5/94-CE in respect of goods cleared subsequently. However, the dispute in that case was in respect of availment of both the notifications in respect of same consignment. The facts in the present case are different. The appellant had initially availed the benefit of notification No.1/93-CE up to the value of ₹ 75 lakh. Thereafter the clearances beyond the said clearance of ₹ 75 lakhs are sought to be cleared in terms of notification No. 24/91 CE. We find that said issue was the subject matter of the Tribunal s decision in the case of Mamta Cement Co. vs. Commissioner of Central Excise, New Delhi 1999 (7) TMI 302 - CEGAT, NEW DELHI . It stand held that when there are more than one notifications on the same issue, the assessee is entitled to avail the benefit of either one and the option lies with him. The Tribunal held that after exhausting the limit of clearance provided in terms of notification No. 1/93 CE, he was entitled to benefit of notification No. 5/94, in respect of subsequent clearances. appellant is claiming the benefit of notification No. 24/91 CE, after exhausting the exemption limit in terms of notification No. 1/93 CE, he would be entitled to benefit of notification No. 24/91-CE in respect of subsequent clearance - Decided in favour of assessee.

Summary

Issues:
- Applicability of multiple notifications for duty rate on goods clearance.
- Entitlement to avail benefits of different notifications for subsequent clearances.

Analysis:

Issue 1: Applicability of multiple notifications for duty rate on goods clearance
The appellant, engaged in manufacturing ordinary Portland cement, filed a classification list claiming duty rates as per notification No. 1/93-CE. This notification allowed nil duty for clearances up to &8377; 30 lakhs, concessional duty for clearances between &8377; 30 lakhs to &8377; 50 lakhs, and another concessional rate for clearances between &8377; 50 lakhs to &8377; 75 lakhs. The Assistant Commissioner approved this classification list, which was challenged before the Commissioner (Appeals). The appellate authority, citing a previous Tribunal decision, held that simultaneous benefit from two notifications for the same consignment was not permissible. Consequently, the appeal was rejected.

Issue 2: Entitlement to avail benefits of different notifications for subsequent clearances
Upon review, the Tribunal noted that the appellant initially utilized the exemption under notification No. 1/93-CE up to &8377; 75 lakhs. Subsequently, the appellant sought to clear goods beyond this value under notification No. 24/91-CE. The Tribunal referred to a previous case involving a similar situation and held that when multiple notifications are available on the same issue, the assessee can choose to avail the benefit of either one. In this case, after exhausting the limit under notification No. 1/93-CE, the appellant was entitled to benefit from notification No. 24/91-CE for subsequent clearances. Consequently, the impugned order was set aside, and the appeal was allowed with relief for the appellant.

This judgment clarifies the entitlement of an assessee to choose between different notifications for duty rates based on the value of clearances and subsequent transactions. It emphasizes the principle that after utilizing one notification's benefits, the assessee can opt for another notification for further transactions.