Exemption notification benefit survives isolated excess duty payment where no conscious withdrawal from the concessional scheme is shown.

An assessee does not lose the benefit of an exemption notification merely because normal duty was paid on some consignments and differential duty with interest was later paid on demand. The isolated payment of full duty did not amount to a conscious withdrawal from the concessional scheme, and no conduct showed an election to abandon the exemption. The doctrine of estoppel did not bar refund of duty paid in excess of what was legally due. The contrary authority was distinguishable on facts.

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Issues: Whether payment of normal duty on some consignments and subsequent payment of differential duty and interest amounted to opting out of the exemption notification, thereby disentitling the assessee to refund of the excess duty paid.

Analysis: The assessee had already availed the exemption notification and was entitled to the concessional rate of duty. The isolated payment of normal duty on some consignments did not amount to a withdrawal from the notification. The facts showed that, after the discrepancy was pointed out, the assessee paid the differential duty and interest, but that conduct did not confer any advantage inconsistent with the notification, nor did it show an election to abandon the exemption. The doctrine of estoppel had no application where the assessee had paid more than what was legally due and claimed refund of the excess. The cited decision on withdrawal from exemption during the financial year was distinguishable on facts.

Conclusion: Mere payment of normal duty on some consignments, and payment of differential duty and interest on demand, did not amount to opting out of the exemption notification. The assessee remained entitled to the refund, and the appeal failed.

Final Conclusion: The judgment affirms that an assessee does not lose the benefit of an exemption notification merely because excess duty was paid on certain clearances, so long as there was no real withdrawal from the notified concession.

Ratio Decidendi: Payment of duty in excess of the concessional rate on some consignments, without a conscious withdrawal from the exemption scheme, does not forfeit the right to claim refund of the excess paid.

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