Exemption under Notification No. 38/97 upheld where earlier option remained in force and contemporaneous declaration showed clear intent.

Entitlement to Notification No. 38/97 was upheld for the disputed period where the assessee's earlier option letter had not been withdrawn and the contemporaneous classification declaration for the relevant period expressly claimed the exemption. Read together, the continuing earlier option and the declaration showed a clear intention to avail the notification from 1-4-1998. The later filing of a separate option letter in August 1998 was held insufficient to defeat the exemption for the intervening period, and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 38/97 for the disputed period despite the separate option letter being filed later.

Analysis: The prior option letter remained unwithdrawn, and the assessee's classification declaration for the relevant period expressly stated entitlement to the notification. On a cumulative reading of the earlier option, its continuance, and the contemporaneous declaration, the intention to avail the exemption from 1-4-1998 was clear. The later filing of a separate option letter in August 1998 was treated as insufficient to deny the benefit for the intervening period.

Conclusion: The assessee was entitled to the benefit of the notification for the disputed period, and the Revenue's appeal failed.

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