Mandatory written option before first clearance is required to claim exemption under Notification No. 50/2003-CE.

Exemption under Notification No. 50/2003-CE was available only if the assessee exercised the option in writing before the first clearance, enabling departmental verification of eligibility. Failure to comply with that pre-condition was not a mere irregularity but a mandatory breach. The assessee therefore was not entitled to the exemption.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 50/2003-CE dated 10.06.2003 despite not exercising the required option in writing before the first clearance.

Analysis: The exemption under the notification was conditioned upon the assessee exercising its option in writing before effecting the first clearance. This requirement enabled the departmental authorities to verify eligibility for the exemption. As the assessee admittedly failed to comply with that pre-condition, the non-compliance could not be treated as immaterial.

Conclusion: The requirement to exercise the option in writing was mandatory, and the assessee was not entitled to the exemption.

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