2003 (12) TMI 86

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....ring the same financial year if he satisfies other conditions?" 2. The above issue came up while considering Appeal No. E/1493/98 filed by M/s. Ankit Packaging Ltd. The essential facts for considering the issue are that M/s. Ankit Packaging Ltd. is a small scale unit engaged in the manufacture of Poly Coated Paper/Plastic Films. Such small scale manufacturers are entitled to exemption from Central Excise duty under Notification No. 1/93, dated 28-2-1993. However, that notification also contained a proviso which allowed a small scale unit to opt out of the exemption and to discharge duty on the goods manufactured by it at the normal rates. We extract that proviso below : "Notwithstanding the exemption contained in Paragraph 1 of this n....

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....cation. Central Excise authority objected to this, holding that once they had started paying duty on the goods cleared, they came within the mischief of the aforesaid proviso to Notification No. 1/93, and they were liable to pay duty on all subsequent clearance in the financial year. M/s. Ankit Packaging Ltd. contested this finding before the lower authorities submitting that the bar under the proviso applied only to small scale units which opted out of the notification and not to units which had opted in. It was also pointed out that clearance of goods on payment of duty for a few days at the beginning of the financial year cannot be construed as opting out of the benefit of the notification. These submissions failed. Hence the appeal to t....

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....urer. There was no requirement to opt in. In the present case, the assessee has also written to the department informing that it was wanting to avail the exemption notification. In the face of such opting in, there was no justification for interpreting the payment of duty on some goods as opting out. Moreover, the assessee has also explained his reason for clearing some goods on payment of duty at the beginning of the financial year; it required some time to compute the aggregate value of the clearances made during the preceding financial year, so as to be sure that it had not exceeded the qualifying value limit during the preceding financial year. Thus, paying duty on the goods cleared during the opening days of the Financial Year was only....