Bagasse board exemption: goods squarely covered by the specific notification, and the assessee could choose the more beneficial exemption.

Goods manufactured from sugarcane bagasse and described as 100% wood-free boards fell within the specific exemption entry for bagasse board under Notification No. 6/2006-CE. Where the product squarely answers that description, the assessee may invoke the more beneficial exemption and cannot be compelled to adopt a broader notification that results in higher duty liability. The denial of exemption on the footing that another notification also covered the goods was therefore unsustainable, and the exemption under Notification No. 6/2006-CE was available.

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Issues: Whether the goods manufactured by the assessee were bagasse boards eligible for exemption under Notification No. 6/2006-CE dated 01.03.2006, and whether the assessee could claim the more beneficial exemption instead of being confined to Notification No. 4/2006-CE dated 01.03.2006.

Analysis: The goods were found to be boards manufactured from sugarcane bagasse, with the lower authority itself recording that the product was 100% wood free and made from sugarcane bagasse. The description of the impugned goods matched the exemption entry for bagasse board, and there was no reason to deny the specific exemption merely because the product also answered a broader description under another notification. Where two exemption notifications are available, the assessee is entitled to choose the one that is more beneficial, and cannot be compelled to opt for a notification carrying a higher duty burden.

Conclusion: The goods were eligible for exemption under Notification No. 6/2006-CE dated 01.03.2006, and the denial of exemption under that notification was unsustainable.

Final Conclusion: The impugned orders were set aside and the appeals were allowed.

Ratio Decidendi: When goods squarely fall within a specific exemption entry, the assessee may invoke the more beneficial exemption notification and cannot be forced to adopt a notification resulting in a higher duty liability.

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