TaxTMI 
TaxTMI 
1995 (6) TMI 127
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....tion and started functioning under the MODVAT Scheme after a lapae of over three years. 2.  The learned Counsel briefly narrating the facts has pleaded that the appellants filed a declaration on 26-3-1986 for availing of the MODVAT credit as at the relevant time, taking into consideration the parameters of the exemption for small scale, the appellant was not eligible for the same. However, later on when the Government revised these parameters for the purpose of exemption to the small scale unit, the appellant unit qualified in terms of the notification for small scale industries for being considered as a small scale unit. He pleaded that even though this declaration for MODVAT which was filed on 26-3-1986 was still surviving, the appe....
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....f MODVAT in respect of the goods which have been used for the manufacture of the goods. He pleaded that this declaration filed on 26-3-1986 should be taken to have subsisted for the purpose of availing of the MODVAT though claimed much later in 1989. In any case, there is no case for levy of any personal penalty as the appellant had acted based on his understanding of the law and he was prayed for setting aside the order of the learned lower authority or substantial reduction in the same. 3.  Sh. Arulsamy, the learned DR, pleaded that the appellants earlier admittedly wanted to avail of the MODVAT facility and when he found that the facility under the exemption notification was more beneficial to him, he himself opted out of it. Havin....
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....e the authorities aware of his operations under that scheme and also to enable the authorities to conduct check regarding his eligibility to the benefit of the scheme. In the present case, the appellant had first opted for the MODVAT scheme and thereafter he filed an application for getting out of the MODVAT for availing of the benefit of exemption notification. This permission was also granted by the Asstt. Collector. We would like to observe here that in law such a permission is not required. In any case, the fact remains that the appellant opted out of the MODVAT scheme and started availing of the benefit of exemption notification. The declaration therefore filed on 26-3-1986 will cease to have any legal force, thereafter, the moment the....