Modvat option bars mid-year withdrawal; exit allowed only in the next year, and mid-year entry permitted before exemption limit.

Where a manufacturer elects at the start of a financial year to pay excise duty and avail of Modvat for specified goods, that election is binding for that financial year and withdrawal is not permitted until the following year. Conversely, a manufacturer who initially availed full exemption may be allowed to opt into Modvat mid-year before exhausting exemption thresholds, without reopening assessments for earlier exempt clearances.

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