Small Scale Industry exemption remains for the full year absent a fresh opt-out, despite some duty-paid invoices.

Filing the prescribed declaration to claim the Small Scale Industry concession under Notification No. 1/93-C.E. kept the option effective for the full financial year unless the assessee filed a fresh option to give it up. Mere payment of duty at the normal rate on some invoices did not amount to withdrawal from the concessional scheme or revision of the earlier option. The assessee therefore remained entitled to the exemption for the remaining clearances, and the Revenue's challenge failed.

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Issues: Whether the assessee had opted out of the Small Scale Industry exemption under Notification No. 1/93-C.E. merely by paying duty at the normal rate on some invoices, and was therefore liable to duty at the tariff rate for the remaining clearances during the financial year.

Analysis: The assessee had filed the required declaration under Rule 173B of the Central Excise Rules and had opted for the concession under Notification No. 1/93-C.E. The governing position was that such option remained effective for the whole financial year unless a fresh option was filed to give up the exemption. Mere payment of duty at the normal rate on a few invoices did not, by itself, amount to a withdrawal from the concessional scheme or a revision of the option earlier exercised.

Conclusion: The assessee had not opted out of the exemption and remained entitled to the benefit of Notification No. 1/93-C.E.; the Revenue's challenge failed.

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