Monthly computation of exemption benefit under Notification No. 32/1999-C.E. prevails over daily clearance-based testing.

Notification No. 32/1999-C.E. was to be applied on a monthly basis, because the prescribed benefit depended on duty payment and Cenvat credit utilisation at month-end rather than on a separate test for each clearance day. The notification contained both an upper limit linked to value addition and a lower limit based on duty actually paid in cash, and nothing in its terms justified daily computation of eligibility. The assessee could not be denied the lower-limit benefit merely because entitlement was examined with reference to each day's clearances, and the exemption was therefore available on the monthly computation adopted in the document.

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Issues: Whether the exemption under Notification No. 32/1999-C.E. had to be computed on a daily basis by taking credit availability as on the date of each clearance, or on a monthly basis by considering the duty paid in cash at the end of the month.

Analysis: The notification prescribed two limits for the benefit, namely, an upper limit linked to the prescribed value addition and a lower limit tied to the duty actually paid in cash. Since duty payment and utilisation of Cenvat credit were made on a monthly basis, there was no warrant in the notification for adopting a daily computation. The appellant could not be denied the benefit of the lower limit expressly provided in the notification merely because the department sought to test entitlement with reference to each day's clearance.

Conclusion: The exemption was required to be computed on a monthly basis, and the appellant was entitled to the amount of duty paid in cash claimed under the notification.

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