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TMI Blog2016 (10) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... s issue has been decided in the case of Canara Poly Pack Ltd. Vs. Commr. of C.Ex., Bangalore-III [2007 (9) TMI 286 - HIGH COURT OF KARNATAKA AT BANGALORE] by Hon’ble Karnataka High Court where it has been held that option once exercised shall not be withdrawn by the manufacturer during the remaining part of the same financial year. Therefore, in this case option exercised in April, 2004 by the appellant will continue to hold good for the entire financial year. Appellant was not entitled to change such option exercised once and start paying duty at full rate. Therefore, observations made by first appellate authority in Order-in-Appeal to deny exemption for the entire financial year is ex facie wrong and is set aside. In such cases of interpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice dated 24/2/2005 was improper utilisation of CENVAT Credit amounting to ₹ 1,83,014/- under CENVAT Credit Rules. That as per clause 2 (i) of Notification No. 9/2003-CE dated 1/3/2003 option of availing exemption notification has to be exercised once and cannot be withdrawn during the same financial year. That appellant initially filed declaration in April, 2004 where exemption under Notification No. 91/03-CE was availed and Central Excise duty was paid @ 9.6%. That subsequently appellant vide letter dated 1/9/2004 intimated the Department that they will be paying full rate of duty @16%.That there was nothing wrong in payment of duty at higher rate and benefit of exemption notification No.9/2003 cannot be denied for the entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaration in April, 2004. By another letter dated 1/9/2004 appellant started paying duty at full rate and intimated the Department. In view of the provisions contained in clause 2 (i) of exemption under Notification No. 9/03-CE, option exercised once cannot be changed by the appellant in the same financial year. This issue has been decided in the case of Canara Poly Pack Ltd. Vs. Commr. of C.Ex., Bangalore-III (Supra) by Hon ble Karnataka High Court where it has been held that option once exercised shall not be withdrawn by the manufacturer during the remaining part of the same financial year. Therefore, in this case option exercised in April, 2004 by the appellant will continue to hold good for the entire financial year. Appellant was n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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