9911796707
TMI Blog1998 (7) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... upto 30-7-1996 and they filed declaration under Rule 173B for claiming the SSI Exemption under the Notification No. 1/93-C.E., dated 28-2-1993 and started paying duty at the concessional rate of 10% ad valorem, with effect from 31-7-1996. By the said impugned order the lower authority denied the exemption under Notification No. 1/93-C.E. and demanded the differential duty of Rs. 1,37,436/- on the ground that at the beginning of the Financial Year the appellants adopted to pay the duty at the normal rate and they did not opt for SSI benefit under the Notification with effect from 1-4-1996. 2. In the grounds of appeal the appellants submitted that they came to know about their eligibility for SSI exemption in July, 1996 only and immedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise at the rate applicable to the specified goods but for the exemption contained in the said para 1, subject to the condition such manufacturer pay duty at the rate applicable but for the aforesaid exemption on all subsequent clearances of the specified goods made after availing such option in any Financial Year in which such date of option falls. From the above provisions, it is clear that para 4 is not applicable to the appellants as they did not exercise the option to pay duty at the normal rate in the middle of the financial year but they opted for the benefit of exemption under para 1 of the said Notification. This para grants exemption to the specified goods cleared for home consumption on or after first day of April in any Financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to avail exemption under the said Notification in the middle of the Financial Year, is not legally correct. If the appellant has fulfilled all the conditions of the said Notification, exemption is available to him under para 1 of the said Notification even though the appellants had exercised the option not to avail the benefit of this Notification at the beginning of the Financial Year by paying the normal rate of duty. The words "on or after the first day of April in any Financial Year" appearing in para 1 of the Notification No. 1/93-C.E. are very relevant in the instant case. The lower authority therefore, was not correct in disallowing the benefit to the appellants. 5. In view of the above, I allow the appeal and set aside th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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