Binding exemption election under Notification No. 1/93-C.E. bars later claim to the benefit for clearances in the same year.

An exemption notification allowing a manufacturer to opt out of the benefit can bind the assessee for the remainder of the financial year once that election is made. Here, the assessee had filed its classification list and declaration choosing not to avail Notification No. 1/93-C.E., so it could not later claim the same exemption for subsequent clearances in that year. The relied-upon authorities were distinguished because they did not involve an express bar on changing the option after election. A separate dispute on the applicable rate of duty was left undecided because the relevant adjudication order was not before the authority.

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Issues: Whether the assessee, having opted in its classification list and declaration not to avail the benefit of Notification No. 1/93-C.E., could later claim the exemption for subsequent clearances during the same financial year.

Analysis: Paragraph 4 of Notification No. 1/93-C.E. expressly permits a manufacturer to opt not to avail the exemption, but once that option is exercised, duty becomes payable on all subsequent clearances made after the option in that financial year. The assessee had admittedly filed the classification list and declaration opting out of the exemption. The decisions relied upon by the assessee were distinguished because they did not involve a similar express restriction on changing the option after election. The separate contention regarding the applicable rate of duty was not decided in the absence of the relevant adjudication order.

Conclusion: The assessee was not entitled to claim the exemption under Notification No. 1/93-C.E. for the relevant period after having opted not to avail it, and duty was payable without the benefit of that notification.

Ratio Decidendi: Where an exemption notification makes the manufacturer's option not to avail the exemption binding for the financial year, the assessee cannot resile from that election and claim the exemption for later clearances in the same year.

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