2004 (2) TMI 88 - AT - Central Excise

Summary

Issues:
Whether an assessee can exercise option not to avail exemption under Notification No. 8/99 and pay normal rate of duty on some goods while claiming the benefit of the notification on other goods.

Analysis:
The issue before the Appellate Tribunal was whether an assessee could opt not to avail exemption under Notification No. 8/99 for certain goods while claiming the benefit for others. The appellant manufactured nine electrical goods and opted for the notification for four goods while paying duty at the tariff rate for the remaining five. The Commissioner (Appeals) held that the appellant, being an SSI unit, had to opt for the exemption for all final products or pay normal duty for all goods. The appellant argued that previous Tribunal decisions allowed such selective opting. The Tribunal referred to a previous case but disagreed with its view, leading to a Larger Bench consideration.

The crux of the matter lay in the interpretation of Notification No. 8/99, which allowed manufacturers to opt out of exemption and pay normal duty. The appellant argued that the language did not restrict the option to all specified goods. Previous Tribunal decisions supported this view, citing cases like Abilash Rubber Products and Faridabad Tools. The Department argued that the situation was different due to specific clauses in the notification and the use of general terms. However, the Tribunal noted a consistent interpretation in previous cases where selective opting was allowed.

In analyzing past notifications like No. 175/86 and No. 1/93, the Tribunal found no substantial difference in language compared to No. 8/99. Previous decisions, including those affirmed by the Supreme Court, supported the appellant's position. The Tribunal concluded that the appellant was entitled to exercise the option of not availing exemption for some goods under Notification No. 8/99 while claiming it for others. Therefore, the appeal was allowed, setting aside the Commissioner's decision.

In conclusion, the Tribunal's judgment clarified that an assessee could selectively opt out of exemption under Notification No. 8/99 for certain goods while claiming it for others. The decision was based on consistent interpretations of similar notifications and previous Tribunal rulings, affirming the appellant's right to choose the application of the exemption.