Strict construction of exemption notifications barred duty-free clearance for a supporting manufacturer without an express licence-based entitlement.

Duty-free exemption notifications must be construed strictly, and their benefit cannot be extended beyond the express terms of the instrument. A supporting manufacturer named in the advance licence and DEEC book, but not itself holding the advance licence, could not claim duty-free clearance under Notification No. 3/93 and Rule 191BB because the notification contained no express provision covering such supplies unless the ultimate recipient held the licence. The connection to export fulfilment did not overcome the absence of enabling language. The appellant was therefore not entitled to the exemption.

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Issues: Whether a supporting manufacturer, who was named in the advance licence and DEEC book but did not itself hold an advance licence, could claim duty free clearance under Notification No. 3/93 and Rule 191BB.

Analysis: The benefit of duty-free clearances under an exemption notification must be construed strictly. The notification did not contain any provision extending the exemption to goods supplied to a supporting manufacturer unless the ultimate recipient held the advance licence. Even if the arrangement was connected with export fulfilment, the absence of an express enabling provision in the notification prevented extension of the benefit to the appellant.

Conclusion: The appellant was not entitled to claim duty free clearance, and the issue is decided against the appellant.

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