SSI exemption benefit survives isolated higher-duty payments; refund of differential duty allowed absent clear withdrawal from the notification.

An assessee who had opted for SSI exemption under Notification No. 09/2002 did not lose the benefit for the entire period merely because full tariff duty was paid on some clearances. In the absence of any letter or other material showing a clear withdrawal from the notification, occasional higher-duty payments were treated as an aberration and not a valid opt-out from the exemption. As the differential duty had been paid after clearance, unjust enrichment did not bar refund. The exemption benefit therefore continued for the relevant period, and refund of the differential duty was allowable.

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Issues: Whether an assessee, having opted for SSI exemption under Notification No. 09/2002, loses the benefit of the notification for the entire period merely because in some clearances full tariff duty was paid, and whether refund of the differential duty is barred.

Analysis: The appellants had opted for the exemption notification and were required to pay duty at the concessional rate. Payment of tariff rate duty on a few clearances, by itself, did not show any withdrawal from the notification, particularly when there was no letter or other material evidencing an opt-out. The aberration in some clearances could not justify denial of the notification benefit for the whole period. Since the differential duty had been paid after clearance, the question of unjust enrichment did not arise.

Conclusion: The benefit of the SSI notification could not be denied for the entire period, and the assessee was entitled to refund of the differential duty.

Final Conclusion: The appeal succeeded and the assessee retained the exemption benefit, with refund-related relief flowing from the finding that there was no valid opting out of the notification.

Ratio Decidendi: Mere payment of higher duty on some clearances does not amount to opting out of an exemption notification or forfeit its benefit for the entire period in the absence of a clear withdrawal from the option.

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