Exemption under import notification applies only to licences strictly meeting the prescribed policy conditions.

Exemption under Notification No. 41/97 was confined to articles imported against quantity-based advance licences issued under the specified EXIM Policy provisions. A licence issued under Notification No. 31/97, even with an endorsement referring to Para 7.5 of the Hand Book 1997-2002, did not by itself satisfy those conditions. In the absence of clarification from the licensing authority and given the different basis of issuance, the importer could not claim the notification benefit. The claim for exemption was therefore rejected and the denial was upheld.

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Issues: Whether the importer was entitled to exemption under Notification No. 41/97 for goods imported against an advance licence issued under Notification No. 31/97.

Analysis: Notification No. 41/97 extended exemption only to articles imported against quantity based advance licences issued in terms of the specified EXIM Policy provisions. The licence in question was issued under Notification No. 31/97 and bore an endorsement showing issuance under Para 7.5 of the Hand Book 1997-2002. In the absence of any clarification from the licensing authority and in view of the different basis of issuance, the conditions for availing the exemption under Notification No. 41/97 were not satisfied.

Conclusion: The importer was not entitled to the benefit of Notification No. 41/97 and the rejection of the claim was upheld.

Ratio Decidendi: Exemption under a notification must be confined to imports strictly covered by the licensing and policy conditions prescribed in that notification.

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