Exemption claim under Notification No. 245/83 limits benefit only; duty cannot be imposed on unclaimed clearances.

Notification No. 245/83 required the manufacturer to claim exemption for clearances covered by it, and failure to do so could disentitle the assessee from the benefit on those clearances. That omission did not authorise imposition of duty under the notification on medicines supplied to the Government for which no exemption had been claimed. The operative effect was limited to denial of the notification benefit for the relevant goods, not creation of a duty liability on other clearances. The appellant was therefore not liable to pay duty under the notification for the Government-supplied goods where the exemption had not been claimed.

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Issues: Whether the appellant could be made liable to pay duty under Notification No. 245/83 in respect of medicines supplied to the Government when exemption under the notification had not been claimed for those clearances.

Analysis: The notification required the manufacturer to claim exemption in respect of clearances covered by it, and the appellant's own case had already held that failure to claim exemption for certain goods could disentitle the assessee to the benefit of the notification for those goods. That position did not justify fastening duty liability under the notification itself on goods for which no exemption was claimed. The consequence was only that the appellant could be denied the benefit of the notification for the goods on which the benefit had been claimed, not that duty under the notification could be imposed on the remaining goods.

Conclusion: The appellant was not liable to pay duty under Notification No. 245/83 for the goods supplied to the Government for which no benefit of the notification had been claimed.

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