Product-wise exemption under Notification No. 1/93 can be selectively claimed, and goods need not be clubbed together.

Exemption under Notification No. 1/93 could be claimed product-wise, and a manufacturer was not required to either accept or ? No-must not use non-English. Product-wise exemption could be claimed selectively for some manufactured goods while not claiming it for others. The non obstante clause was read as addressing a different situation, namely partial-year exercise of the exemption option, and did not require all specified goods to be clubbed together. On that construction, the assessee could avail the benefit for two products and decline it for the third, so denial of the exemption was unsustainable.

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Issues: Whether a manufacturer could claim exemption under Notification No. 1/93 in respect of some products while choosing not to claim the exemption in respect of other products, and whether the non obstante clause in the notification barred such selective availment.

Analysis: The governing principle accepted was that exemption can be claimed product-wise, and a manufacturer is not required to either avail or forgo the notification in respect of all manufactured goods uniformly. The non obstante clause was construed as applying to a different situation, namely where an option is exercised during a financial year to avail exemption for part of the year and it for the remaining part. It was held that the clause did not prohibit a manufacturer from treating each specified good separately. On that construction, the specified goods were not required to be clubbed together for the purpose of the notification.

Conclusion: The assessee was entitled to avail the exemption for two products while not claiming it for the third product, and the denial of that benefit was unsustainable.

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