SSI exemption may be claimed mid-year under Notification No. 1/93-C.E. despite earlier duty payment.

SSI exemption under Notification No. 1/93-C.E. could be claimed during the financial year even after initial clearances were made on payment of duty at the normal rate. The option in paragraph 4 was treated as a choice not to avail the exemption and continue paying duty, not as a bar on switching to exemption later in the same year, provided the notification's conditions were met. The phrase "on or after the first day of April in any Financial Year" was read as permitting availability of the benefit throughout the year. The denial of SSI exemption was therefore not sustainable.

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Issues: Whether a manufacturer eligible for SSI exemption under Notification No. 1/93-C.E. could claim the benefit in the middle of the financial year after having initially paid duty at the normal rate.

Analysis: The notification grants exemption to specified goods cleared on or after the first day of April in any financial year and allows the manufacturer, for the first clearances up to the prescribed aggregate value, either to pay duty at the applicable rate where credit under Rule 57A is availed or to take full exemption where no such credit is taken. The option under paragraph 4 concerns a choice not to avail the exemption and to continue paying duty at the normal rate; it does not prevent a manufacturer from opting for the exemption later in the same financial year, so long as the notification's conditions are satisfied. The wording 'on or after the first day of April in any Financial Year' supports availability of the benefit during the year.

Conclusion: The assessee was entitled to claim SSI exemption in the middle of the financial year, and the denial of the benefit was not sustainable.

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