Sequential exemption notifications cannot be switched to early; later benefit arises only after earlier exemption is fully exhausted.

Where exemption notifications operate in sequence, a later notification cannot be claimed before the exemption limit under the earlier notification has been fully exhausted, if the scheme does not permit simultaneous or premature switching. On a joint reading of the two notifications, the assessee, having already availed full exemption under the earlier notification, could not shift to the later notification while the earlier benefit remained unexhausted. The entitlement under the later notification arose only after the first notification's limit had been completely used, so the claim under the later notification was rejected and the Revenue's position was upheld.

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Issues: Whether the assessee could avail the benefit of Notification No. 12/95 dated 16-3-95 without first exhausting the exemption available under Notification No. 1/93 dated 28-2-93.

Analysis: The assessee was already availing full exemption under Notification No. 1/93 and attempted to shift to the later Notification No. 12/95 before exhausting the permissible clearances under the earlier notification. On a joint reading of the two notifications, the later notification could not be opted for while the earlier exemption remained unexhausted. The entitlement under the second notification arose only after the limit under the first notification had been fully used.

Conclusion: The assessee was not entitled to claim the benefit of Notification No. 12/95 before exhausting Notification No. 1/93, and the order rejecting the claim was . The appeal was rejected in favour of the Revenue.

Final Conclusion: The impugned order was upheld and the assessee's challenge failed.

Ratio Decidendi: Where exemption notifications operate in sequence, a subsequent notification cannot be invoked before the exemption limit under the earlier notification has been fully exhausted, if the scheme of the notifications does not permit simultaneous or premature switching.

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