Exemption notification applies from publication date; post-notification clearances count in slab computation, with duty requantified on remand.

An exemption notification became operative from the date of its publication in the Official Gazette, and its application was not postponed until the assessee chose to opt for the benefit. Clearances made after the notification took effect had to be counted for determining the first-clearance exemption slabs under Notification No. 1/93-C.E. as amended. The contrary view that pre-option clearances were outside the notification was rejected. Because the duty demand needed adjustment on the revised position, the matter was remanded for fresh requantification of duty.

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Issues: Whether, for the purposes of Notification No. 1/93-C.E. as amended by Notification No. 19/94-C.E., clearances made after the notification took effect but before the assessee exercised the option to avail the exemption could be excluded from the computation of first clearances, and whether the duty demand required requantification.

Analysis: The amended exemption became operative from the date of its publication in the Official Gazette. The scheme of paragraph 4 of Notification No. 1/93-C.E. gave the manufacturer an option not to avail the exemption, but did not make the applicability of the notification depend on the assessee's awareness or formal election. The expression "first clearance" had to be read with the financial-year based exemption structure, and clearances made after the notification became effective were liable to be counted for the exemption slabs. The contention that clearances made before the assessee opted in were outside the notification was rejected. At the same time, since the adjudicating authority had confirmed duty on a basis requiring adjustment, the matter had to be sent back for proper recomputation.

Conclusion: The exemption applied from 25-4-1994 and clearances from that date were to be taken into account; the contrary view taken by the Commissioner (Appeals) was set aside. The duty was directed to be requantified on remand.

Final Conclusion: The appeals succeeded on the main exemption issue in favour of the Revenue, but the matter was remanded for fresh computation of duty in accordance with the revised position.

Ratio Decidendi: An exemption notification takes effect from the date of its publication, and its operation is not postponed until the assessee chooses to avail it; clearances made after the notification becomes effective must be counted in the exemption computation.

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