Sequential exemption use for cement clearances permitted after small-scale limit is exhausted under separate concession notification.

Notification No. 1/93-C.E. provided small-scale exemption or concessional duty, while Notification No. 5/94-C.E. granted a separate concessional rate for cement subject to its own conditions. The second proviso to Notification No. 5/94-C.E. was construed as barring only simultaneous benefit on the same clearance where the goods were still covered by Notification No. 1/93-C.E. It did not prevent sequential use of the two notifications on different clearances after the small-scale exemption limit had been exhausted. Accordingly, cement clearances beyond the exemption limit could still qualify for the concessional rate under Notification No. 5/94-C.E.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 5/94-C.E. on cement clearances made after availing Notification No. 1/93-C.E. up to the eligible limit.

Analysis: Notification No. 1/93-C.E. granted exemption or concessional duty to small scale units, while Notification No. 5/94-C.E. granted a concessional rate for cement subject to its own conditions. The second proviso to Notification No. 5/94-C.E. barred its application only where the same cement, at the point of clearance, was covered by the exemption under Notification No. 1/93-C.E. The bar was held to prevent simultaneous availment on the same consignment and not to deny the concessional rate for clearances beyond the exemption limit already exhausted under Notification No. 1/93-C.E.

Conclusion: The assessee was entitled to avail Notification No. 5/94-C.E. for clearances beyond Rs. 50 lakhs, and the Revenue's challenge failed.

Final Conclusion: The Tribunal affirmed that the debarring clause did not prohibit sequential use of the two notifications on different clearances and sustained the concessional duty benefit under Notification No. 5/94-C.E. after exhaustion of the small scale exemption limit.

Ratio Decidendi: A notification barring its application where another exemption is availed prevents only simultaneous benefit on the same clearance and does not preclude concessional duty on subsequent clearances after the earlier exemption limit is exhausted.

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