Exemption notifications are optional: rebate on exports must be computed on duty actually paid, not on assumed concessional duty.

Rebate on export clearances could not be reduced on the footing that the assessee should have claimed a concessional exemption instead of paying duty at the higher rate. The goods were cleared on payment of duty, and no objection was raised at clearance stage; the dispute arose only when the rebate claim was processed. The applicable principle is that an exemption notification is optional, and an assessee cannot be forced to avail it if it chose not to. Rebate was therefore allowable on the duty actually paid, and curtailment of the excess rebate was unsustainable.

---

---

Issues: Whether rebate of duty on export clearances could be reduced on the ground that the assessee ought to have cleared the goods at the concessional rate under the exemption notifications instead of paying duty at the higher rate.

Analysis: The exported goods were admittedly cleared on payment of duty at 20% ad valorem and no objection was raised at the time of clearance. The dispute arose only when the rebate claim was processed. The applicable principle is that availment of an exemption notification is optional, and an assessee cannot be compelled to claim the concession if it has chosen not to do so. Once duty was actually paid on the export clearances, rebate could not be curtailed by insisting that lesser duty ought to have been paid under the notification.

Conclusion: The assessee was entitled to rebate on the duty actually paid, and the denial of the excess rebate was unsustainable.

---