Conditional exemption notifications may be chosen over alternative concessions if the manufacturer can meet the prescribed conditions.

A manufacturer may opt for a conditional exemption notification for the relevant financial year if it is prepared to satisfy the attached conditions, even where another notification offers an unconditional partial concession. The availability of the alternative concession does not, by itself, make clearances under the conditional notification legally ineligible for duty relief. The commentary states that the conditional exemption operates for the full year subject to compliance, and that the assessee is not compelled to abandon it merely because a different exemption is also available.

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Issues: Whether the manufacturer could choose between a conditional exemption notification granting full exemption up to a specified clearance value and a different notification granting unconditional partial exemption.

Analysis: The exemption under Notification 1/93 operated for the entire financial year and was subject to compliance with stipulated conditions. The alternative notification granted an unconditional concession, but the existence of that notification did not make the clearances under Notification 1/93 non-liable to duty as a matter of law. A manufacturer could assess, for the relevant year, whether it would be able to satisfy the conditions attached to the conditional exemption and was not compelled to forego that notification merely because another concession was available.

Conclusion: The manufacturer was entitled to the option of availing Notification 1/93 and was not bound to adopt Notification 52/93; the appeal failed.

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