Written intimation for exemption notification compliance is sufficient where it timely notifies Revenue before first clearance.

A written intimation of the option to avail an exemption notification, filed before the first clearance, was treated as sufficient compliance where the notification did not prescribe any separate format or express requirement for a distinct declaration. A declaration filed under Rule 173B, which put the Revenue on notice of the assessee's intention to claim the benefit, satisfied the condition in Notification No. 9/99-C.E. Denial of exemption solely because no separate declaration was filed was considered hyper-technical and unsustainable. The assessee was therefore entitled to the notification benefit, and the disallowance of exemption was set aside.

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Issues: Whether the benefit of Notification No. 9/99-C.E. could be denied for want of a separate declaration, when the assessee had filed a declaration under Rule 173B before the first clearance.

Analysis: The condition in the notification required the manufacturer intending to avail the exemption to exercise the option in writing before effecting the first clearance. The requirement was meant to put the Revenue on notice, and no prescribed format or express stipulation for a separate declaration was shown in the notification. A declaration filed under Rule 173B, disclosing the option to avail the exemption before the first clearance, satisfied the condition. Denial of the benefit on the ground of absence of a separate declaration was held to be hyper-technical and inconsistent with justice.

Conclusion: The denial of exemption was unsustainable. The assessee was entitled to the benefit of the notification, and the order disallowing the exemption was set aside.

Ratio Decidendi: Where a notification requires written intimation of an option to avail exemption before the first clearance, a declaration that duly informs the Revenue and is filed in time constitutes sufficient compliance unless the notification expressly requires a separate prescribed declaration.

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