Strict construction of exemption notifications barred duty relief for raw materials used to lay athletic tracks.

An exemption notification must be construed strictly, and imported goods are classified by their condition at the time of import. Polyurethane granules and powder brought in for laying athletic tracks were treated as raw materials, not as finished synthetic tracks or artificial surfaces, so they did not fall within the scope of Notification No. 109/94-Customs. A certificate produced under the sports department scheme could not expand the customs exemption, and a later notification extending relief to goods for laying tracks indicated that such materials were not covered earlier. The claimed exemption was therefore unavailable, although only partial pre-deposit was directed on the facts.

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Issues: Whether polyurethane granules and powder imported for laying athletic tracks were covered by the exemption under Notification No. 109/94-Customs and whether, on the facts, a partial waiver of pre-deposit was justified.

Analysis: The notification, as it stood at the relevant time, exempted synthetic tracks and artificial surfaces falling under Heading 95.06, together with equipment required for their installation, subject to production of the prescribed certificate. The goods imported were raw materials for making the track and were classifiable as such, not as finished synthetic tracks or artificial surfaces. The scheme of the sports department could not enlarge the scope of the customs exemption. The later notification expressly extended relief to goods for laying artificial surfaces and synthetic tracks, which showed that such raw materials were not covered earlier. The certificate produced did not bring the goods within the notification, and the relevant test was the condition of the goods at the time of assessment.

Conclusion: The claimed exemption was not available to the imported raw materials. However, considering the appellant's status and the circumstances, only a partial pre-deposit was directed, with waiver of the balance on compliance.

Ratio Decidendi: An exemption notification must be construed strictly, and goods are to be classified according to their form at the time of import; later enlargement of the exemption does not govern earlier imports.

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