Clearances-based incentive notifications must be applied by their plain language, not recast as production-based schemes.

An incentive notification that repeatedly used the term "clearances" had to be applied according to its plain language, even though the broader scheme referred generally to increased production. The governing comparison was therefore between clearances in the base year and clearances in the incentive year, not production levels. Temporary closure, lay-off of labour, or absence of production for part of the period did not by itself defeat eligibility where raw materials were received and clearances were made during that time. The scheme thus operated on clearances rather than production, and the assessee remained entitled to the incentive.

---

---

Issues: Whether incentive under Notification No. 283/82-C.E. was to be determined with reference to production or to clearances, and whether temporary closure or no production during part of the incentive period disentitled the assessee to the benefit.

Analysis: The notification, read as a whole, used the expression "clearances" throughout and the explanatory memorandum also referred to increased clearances, whereas the budget speech and general object of the scheme referred to increased production. The wording of the notification was held to be deliberate, and its natural meaning could not be displaced by reference to general intention. The comparison required by the scheme was therefore between clearances during the base year and clearances during the incentive year. The fact that the factory had no production for a period because the labour force was laid off did not alter the legal position where raw materials were received and clearances were effected during that period.

Conclusion: The incentive scheme applied on the basis of clearances and not production, and the assessee was not disentitled by the temporary closure or absence of production during part of the relevant period.

Ratio Decidendi: Where an exemption or incentive notification expressly measures eligibility by clearances, the notification must be applied according to its plain language and not recast by reference to a general production-based intention.

---