2001 (11) TMI 341

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.... availing Modvat Credit in respect of remaining goods manufactured by them. 2. Shri K.L. Rekhi, learned Consultant, submitted that the Appellants manufacture 9 electrical goods; that in their classification declaration effective from 1-4-99, they opted for the benefit of SSI exemption under Notification No. 8/99-C.E. in respect of 4 goods and in respect of remaining 5 items they preferred to pay Central Excise duty at tariff rate and availed of Modvat Credit of the duty paid on inputs used in or in relation to manufacture of these 5 items; that under Declaration dated 28-6-99 they claimed the benefit of Notification No. 8/99 in respect of PVC Conduit pipes/DPE pipes also; that the Deputy Commissioner, under Adjudication Order No. 29....

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.... confirmed the view taken by the Tribunal by dismissing the Revenue's Civil Appeal, as mentioned in the Court Room Highlights at Page A149 of 1996 (82) E.L.T. Thus, the view taken by the Tribunal that the full exemption under small scale exemption notification on the one hand, and the Modvat credit on the other hand, could be availed of simultaneously by a manufacturer, but on different goods, has been confirmed by the Supreme Court by virtue of doctrine of merger." 3. The learned Consultant also mentioned that there is nothing in Notification No. 8/99-C.E. to the effect that a SSI Unit must spread over its benefit uniformly to all the specified goods manufactured by it and it chooses to follow the normal statutory mode of assessmen....

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....exemption under the said Notification. 5. We have considered the submissions of both the sides. Para 2 of Notification No. 8/99-C.E. provides that "the exemption contained in this notification shall apply only subject to the following conditions, namely :- (i)      a manufacturer who intends to avail the exemption under this notification shall exercise his option in writing for availing the exemption under this notification before effecting the first clearances under this notification and such option shall be effective from the date of exercise of option. Such option shall not be withdrawn during the remaining part of the financial year except when an option is exercised with respect to Notification No. 9....