1999 (7) TMI 302 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 5/94 regarding exemption eligibility after availing full exemption under Notification No. 1/93.
2. Discrepancy in allowing benefit of Notification No. 5/94 after clearances of Rs. 50 lakhs.
3. Authority's refusal to permit switching to Notification No. 5/94.
4. Applicability of Notification No. 5/94 in the case of cement manufacturers.
5. Legal precedent regarding the option to choose between conflicting notifications.

Analysis:
1. The appeal challenged the Commissioner of Central Excise (Appeals) finding that the appellants could switch to Notification No. 5/94 only after fully availing the exemption under Notification No. 1/93. The Government's clarification was cited in support of this interpretation.

2. The appellants, engaged in cement manufacturing, declared their exemption under Notification No. 1/93 for clearances up to Rs. 50 lakhs, and thereafter, under Notification No. 5/94. Despite this clear declaration, the authorities did not allow them to switch to Notification No. 5/94 after Rs. 50 lakhs of clearances.

3. The appellant's counsel relied on a Tribunal decision in a similar case to argue for the benefit of Notification No. 5/94 after Rs. 50 lakhs of clearances. The Tribunal's ruling emphasized the option available to manufacturers to choose between conflicting notifications based on specific consignments.

4. The Judicial Member observed that the Tribunal previously held that manufacturers could avail the benefit of Notification No. 5/94 after exhausting the exemption under Notification No. 1/93. Following this precedent, the appellant was entitled to the benefit of Notification No. 5/94 for clearances exceeding Rs. 50 lakhs.

5. The Tribunal reaffirmed the principle that the choice of notification, when multiple options exist, rests with the assessee. Citing previous decisions, the Tribunal ruled in favor of the appellant's right to opt for Notification No. 5/94 after utilizing the exemption under Notification No. 1/93, thereby allowing the appeal with appropriate relief as per the law.