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TMI Blog2017 (8) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... ould and consequently availed Modvat credit, therefore they are not entitled for exemption - Held that: - In the notification there is no condition that for availing exemption notification the assessee cannot opt out in the middle of the financial year. As per condition of the notification for availing exemption Modvat credit should not be availed - In the present case since respondent has availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng under Chapter 3923.90 of the Schedule to the Central Excise Tariff Act, 1985. According to notification the goods are exempted upto the aggregate value of clearances of ₹ 85 lakhs and thereafter consessional rate of duty @ 5% is chargeable subject to condition No. 10. According to which manufacturer should not avail credit of duty paid under Rule 57A or Rule 57B. The department s case is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the entire period i.e. in a particular financial year the respondent is not required to claim the Modvat. Since the respondent has availed Modvat credit they have violated the condition 10 of Notification No. 5/98-C.E., accordingly they are liable to pay duty on the clearances of ₹ 85 lakhs which was made under Nil rate of duty. 3. None appeared on behalf of the respondent. 4. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee cannot opt out in the middle of the financial year. As per condition of the notification for availing exemption Modvat credit should not be availed. In the present case since respondent has availed Modvat credit, they have cleared the goods at normal rate of duty therefore exemption availed upto the aggregate value of ₹ 85 lakhs cannot be disputed for the reason that during the cle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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