9911796707
TMI Blog2009 (11) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... common order. 2. Heard both sides. 3. The relevant facts, in brief, are that the Appellants were availing the benefit of Notification No. 16/97 in respect of goods manufactured by them. The said notification is subject to the condition that the manufacturer does not avail of the credit of duty under Rule 57A of the Central Excise Rules, 1944. The Appellants in the course of the financial year opted out of Notification No. 16/97 dated 1-4-97 after availing the benefit of the said Notification for some period and started availing Notification No. 38/97 dated 27-6-97. Show cause notices were issued holding that the Appellants were not entitled to opt out of Notification No. 16/97 before crossing the limit of One crore in respect of value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not the case made out in the show-cause notice. He also submits that they are entitled to opt out of 16/97 as has been clarified by the Board vide Circular F.No. B-41/2/97-TRU dated 14-7-97. This has also been upheld by the Tribunal in the case of Punjab General Manufacturing Works v. Commissioner of C. Excise, Lucknow reported in 2006 (205) E.L.T. 474. 6. Ld. DR reiterated the findings of the Commissioner (Appeals). He submits that the conditions of the Notification have to be strictly construed as held by the Hon ble Supreme Court in the case of Eagle Flask Industries Ltd. v. Commissioner of C. Ex., Pune reported in 2004 (171) E.L.T. 296. He also submits that as held by the Tribunal in the case of Karm Sanitations v. Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e option shall be effective from the date of exercise of the option and cannot be changed during the course of the financial year. The manner in which the option has to be exercised is indicated in para 2(ii) of the notification. Para 2(iii) makes it clear that the clearances of specified goods prior to the exercise of the option will be taken into account for computing the aggregate value of clearances as specified in the Table to the notification. In this context, the possible situations that may be encountered are illustrated below : Illustration 1 : A manufacturer who has been paying concessional duty under Notification No. 16/97-C.E. dated 1-4-1997 or full duty, wants to opt for Notification No. 38/97-C.E. This is permissible. Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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