TaxTMI 
TaxTMI 
2026 (1) TMI 506
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....nt for the respondent. ORDER P.V. SUBBA RAO These two applications have been filed by the Respondents for rectification of mistakes in Final Order No. 51171-51174 /2025 dated 11.8.2025 in which four appeals filed by the Revenue were decided. There are no applications for rectification of mistake in the other two appeals. The operative part of the Final Order is reproduced below: 33. In view of the above: (i) Excise Appeal No. 52196 of 2024 filed by the Revenue is dismissed. (ii) Excise Appeal No. 52198 of 2024 filed by the Revenue is dismissed. (iii) Excise Appeal No. 52197 of 2024 filed by the Revenue is partly allowed and the impugned order is modified by upholding the demand of duty on Today f....
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....xima and Today are extended arms of the Principal manufacturer HUL and the details of their activity was available with the department. (vi) Since service tax has been paid, no central excise duty is payable. (vii) Once eligibility of exemption is satisfied, substantial benefit of the exemption notification is not deniable for curable and procedural lapses. (viii) The Final Order maybe modified to allow benefit of exemption notification no. 50/2003-CE for the period June 2009 to March 2010 also for both Maxima and Today. Submissions of the Revenue 4. Shri Rakesh Agarwal, learned authorised representative for the Revenue asserted that the Final Order has no mistakes apparent on record and it calls for no inte....
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....retrospectively from 30.3.2010. (ii) Maxima filed a declaration on 31.3.2010 opting for the exemption notification retrospectively from 15.3.2010. 9. In the Final Order, we have allowed the exemption notification from the retrospective dates from which they have opted for the exemption notification. Relevant portion of the Final Order is reproduced below: Entitlement of Maxima and Today to the benefit of Notification No. 50/2003-CE 19. We note that the notification is a conditional one- available to one who opts for it. An assessee may find it beneficial to opt for the exemption or it may find it beneficial to not opt for it. Just as in case of minor car accidents or minor illnesses, one makes a decision whethe....
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....ption. There is equally no doubt that it is for the assessee to opt for the exemption from any date or not opt at all. Once the assessee opts for an exemption, it cannot change it during the financial year. Evidently, the assessee could opt out of the exemption next year. As discussed above, once an exemption is claimed, the assessee will not get CENVAT credit and may lose some other benefits. Therefore, it cannot be said that the optional exemption notification should be applied even if the assessee does not opt for it or for even for period before it opts for it. 23. Another submission of the learned counsel is that the appellants were under an impression that service tax was payable and excise duty was not payable and, therefore....
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....n the SCN was different inasmuch as in that case, the assessee had filed declarations but they were defective and a bench of this Tribunal found that the defects were curable and for that reason remanded the matter to the Commissioner. Learned counsel for the appellant also submitted that Revenue's appeal against Vasantham was dismissed by the Supreme Court. We find that the Supreme Court dismissed the appeal only on grounds of limitation leaving it open to the Revenue to contest the issues in the remand proceedings. 27. The impugned orders cannot be sustain to the extent they drop the demands even for the periods for which Maxima and Today had not opted for the exemption. Neither can an optional exemption notification be forced up....
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....tification was allowed as per their chosen retrospective dates. 12. Learned counsel also submitted that the benefit of the exemption notification should not be denied for procedural lapses. It has not been denied in the Final Order. Although the declaration was to be made before availing the benefit of the exemption, both Maxima and Today filed declarations and sought benefit with retrospective effect from specific dates and it has been allowed retrospectively from the dates of their choices. 13. The submission of the learned counsel that since service tax has been paid, no excise duty is payable has no basis. If an activity amounts to manufacture, excise duty has to be paid and if the activity is a service, service tax has to be....