Exemption option under Notification No. 1/93-C.E. applies only to the goods actually chosen, not to separate products.

An option to forgo exemption under Notification No. 1/93-C.E. must be exercised only for the specific goods to which it is directed. Payment of duty at the normal rate on waste and scrap, supported by classification declarations and invoice practice, showed an election only for that product and did not amount to a clear waiver of exemption for switches. On that basis, the assessee remained entitled to claim the notification for switches while excluding waste and scrap cleared on normal duty from the exemption limit. Authorities dealing with Modvat credit or different factories and goods were treated as inapplicable on these facts.

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Issues: Whether payment of duty at the normal rate on waste and scrap under Notification No. 1/93-C.E. constituted an option binding the assessee to pay duty at the normal rate on switches as well, and whether the assessee was entitled to exemption under the notification for switches while excluding the value of waste and scrap cleared on normal duty from the exemption limit.

Analysis: The notification permitted a manufacturer to forgo the exemption for specified goods and pay duty at the rate otherwise applicable, but the option had to be read with the goods in respect of which it was actually exercised. Payment of duty at the normal rate on waste and scrap, supported by the classification declaration and invoice practice, showed an option only for that product. There was no material showing that the assessee had opted out of the notification for switches. The relied-upon decisions concerning Modvat credit and different factories or different goods did not apply on the facts.

Conclusion: The assessee's option to pay duty at the normal rate applied only to waste and scrap, not to switches. The assessee remained entitled to exemption under Notification No. 1/93-C.E. for switches, and the Revenue's challenge failed.

Ratio Decidendi: An option under an exemption notification must be confined to the specified goods in respect of which it is exercised and cannot be extended to different goods absent a clear election covering them.

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