Small scale exemption election cannot be withdrawn mid-year once exercised under Notification No. 9/2000-C.E.

A manufacturer that elected to claim the small scale exemption under Notification No. 9/2000-C.E. could not withdraw that choice during the same financial year. The notification was treated as applying for the full financial year once the benefit had been opted for, and its scheme did not permit a mid-year change of election. On that interpretation, the view that the option could not be revoked during the year was upheld, and the adjudicating authority's order was restored.

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Issues: Whether a manufacturer availing exemption under Notification No. 9/2000-C.E. could opt out of the small scale exemption scheme during the same financial year after having exercised the option.

Analysis: The notification was treated as governing the assessee's entitlement for the entire financial year once the benefit had been chosen. The text of the notification was read as not permitting a change of election mid-year, and the adjudicating authority's view that the option could not be withdrawn during that financial year was found to accord with the notification's scheme.

Conclusion: The manufacturer could not opt out of the exemption scheme during the same financial year after opting in. The order of the Commissioner (Appeals) was set aside and the adjudicating authority's order was restored.

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