Written option for excise exemption may not defeat relief where declaration follows shortly after compliance begins.

A manufacturer seeking exemption under Notification No. 38/97-C.E. had to exercise the option in writing, with effect from the date of such option. Where the assessee began availing the benefit shortly after learning of the notification and filed the written declaration within a few days, the brief delay was treated as a practical compliance lapse. The exemption was therefore not to be denied for the intervening period, and benefit was available from the date the assessee started availing it.

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Issues: Whether the assessee could claim exemption under Notification No. 38/97-C.E. for the period before filing the written option with the department.

Analysis: The notification required a manufacturer intending to avail the exemption to exercise the option in writing, with effect from the date of exercise of that option. The assessee became aware of the notification only after its issuance, started availing the benefit shortly thereafter, and filed the declaration within a few days. In the transitional setting, the filing delay was treated as a practical compliance lapse, and the exemption was held not to be denied for that short interval.

Conclusion: The assessee was entitled to the benefit of the notification from the date it started availing it, and denial of exemption for the interim period was unwarranted.

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