Concessional duty exemption under a production ceiling ends for the full financial year once the prescribed limit is crossed.

A concessional duty exemption subject to a monthly production ceiling was held to lapse for the entire financial year once the ceiling was exceeded during the year. The tribunal applied the earlier view that breach of the notification condition disqualified the assessee from continued concessional treatment, so the benefit could not survive after the prescribed limit was crossed.

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Issues: Whether the concessional rate of duty under Notification No. 22/82 remained available for the entire financial year once the prescribed monthly production limit of matches was exceeded.

Analysis: The notification granted a concessional duty rate subject to a monthly production ceiling of 15 million matches. The production limit was exceeded during the relevant month in the financial year. Applying the earlier tribunal view that breach of the notification condition during the year disentitled the assessee from the concession for the whole financial year, the benefit could not continue after the limit was crossed.

Conclusion: The concessional rate under Notification No. 22/82 was not available for the entire financial year once the prescribed limit was exceeded, and the appeal was allowed.

Ratio Decidendi: Where an exemption notification grants concessional duty subject to a production ceiling, crossing that ceiling during the financial year disqualifies the assessee from the concession for the whole year.

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