TaxTMI 
TaxTMI 
2000 (7) TMI 513
X X X X Extracts X X X X
X X X X Extracts X X X X
....ional rate of duty, after availing the Modvat credit in terms of the provisions of Notification No. 1/93-CE. The respondents' clearances were well below the first slab of exemption of Rs. 30 lakhs. However, during the period April, 1994 to August, 1994 the appellant made exports to Nepal on full rate of duty. The department entertained a view that as the respondents had opted for full payment of duty in respect of their exports to Nepal, which have to be considered as clearances for home consumption, the respondents are not entitled to avail the benefit of the notification in respect of their subsequent clearances. As such after issuance of a show cause notice to the appellants demand of duty of Rs. 35,550.08 was confirmed against the appel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation (v) to the said Notification No. 1/93 is as under :- "For the purposes of this notification clearances for home consumption shall also include clearances for export to Bhutan or Nepal." 3. The Revenue entertained the view that as the clearances for export to Bhutan or Nepal have been equated with clearances for home consumption and such export having been made at full rate of duty, the respondents have exercised their option for payment of full rate of duty and in terms of para 4 inserted to Notification No. 1/93 w.e.f. 1-3-1994, they would not be entitled to the subsequent clearances at the rate applicable under the notification, inasmuch as they have exercised their option for payment of full duty on the exported goods. A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....poses of this notification clearances for home consumption shall also include clearances for export to Bhutan or Nepal. Plausible interpretation of the said explanation is that the clearances to Bhutan or Nepal have not been conferred with the status of clearances for home consumption by any deeming fiction of law. But the same is to the effect that the clearances for home consumption have to include (emphasis provided) clearances for exports indicating thereby that for the purposes of computation of slab rate under the said notification clearances for exports to Bhutan or Nepal should also have to be taken into account. As the exports to Bhutan and Nepal have not been conferred with the status of clearances for home consumption, it cannot ....