2014 (4) TMI 1221 - AT - Central Excise

Applicability of notification - benefit of N/N. 5/2006-CE or N/N. 2/2008-CE.? - CENVAT Credit - Held that - On an identical issue, the case of Savana Ceramics, 2014 (9) TMI 104 - CESTAT AHMEDABAD this Bench has allowed the appeal at the stay stage itself, where it was held that It is now a settled proposition of law that when there are two exemption notifications available for a product then it is upto the assessee to choose the exemption notification more beneficial to him - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Eligibility to avail the benefit of Notification Nos. 5/2006-CE and/or 2/2008-CE.

Analysis:

Issue 1: Eligibility to avail the benefit of Notification Nos. 5/2006-CE and/or 2/2008-CE

The judgment revolves around the issue of eligibility to avail the benefit of Notification Nos. 5/2006-CE and/or 2/2008-CE. The appellant had availed the benefit of Notification No. 5/2006-CE, while the department contended that subsequent availment of the benefit of Notification No. 2/2008-CE was impermissible. The Bench referred to a previous case, Savana Ceramics, where a similar issue was addressed. The Bench noted that when two exemption notifications are available for a product, it is up to the assessee to choose the more beneficial one. Citing various legal precedents, including the case of Mangalam Alloys Ltd. Vs. C.C.E., Ahmedabad, the Bench emphasized that the assessee is entitled to the benefit of the exemption notification that provides greater relief, even if it is a general provision. The judgment highlighted that when two exemption notifications are in force simultaneously, the one beneficial to the assessee should be applied. Based on these principles, the impugned order was set aside, and the appeal was allowed.

In conclusion, the judgment clarifies the principles governing the eligibility to avail the benefit of different exemption notifications and establishes that the assessee can choose the more advantageous notification when multiple options are available. The decision provides a comprehensive analysis of the legal framework surrounding exemption notifications and underscores the importance of applying the notification that grants the assessee greater relief, in line with established legal precedents.