2000 (5) TMI 328 - AT - Central Excise

Summary

Issues:
1. Date for computing the aggregate value of clearance.
2. Effective date of the exemption under Notification No. 90/94.
3. Assessee's option to pay duty and avail modvat credit or to avail exemption.

Analysis:
1. Date for computing the aggregate value of clearance:
The Tribunal clarified that the aggregate value of clearance is calculated fiscal year-wise, starting from 1-4-1994. The term 'first clearances' includes those taken on payment of duty from 1-4-1994, which should be considered for computing the aggregate value of clearances.

2. Effective date of the exemption under Notification No. 90/94:
The Tribunal noted that Notification No. 90/94, which provided the exemption, was issued on 25-4-1994. Since the notification did not specify retrospective application, it was deemed applicable only prospectively from the date of its issue, i.e., 25-4-1994.

3. Assessee's option regarding duty payment and exemption:
The Tribunal affirmed that the assessee has the choice to either pay duty on final products and claim credit under the modvat scheme for duty paid on inputs or opt for exemption on final products as per Rule 57C. Therefore, the assessee could avail exemption under Notification No. 1/93 as amended by Notification No. 90/94 from either 25-4-1994 or 6-6-1994.

In conclusion, the Tribunal ordered a remand to the Commissioner for recomputing the duty amount based on the above findings. The appellants were granted an opportunity to be heard in person during the reevaluation process. The penalty imposed was deemed unwarranted and set aside. The appeal was disposed of by remand, emphasizing the need for a reassessment of the duty amount while upholding the assessee's option to choose between duty payment and exemption.