Country-of-origin marking exemption upheld where import was for manufacture, defeating confiscation and penalty under the notification.

Imported goods were subject to a country-of-origin marking requirement under the Trade and Merchandise Marks Act, 1958, but the exemption notification was interpreted to cover the importer on the facts found. The Tribunal's view that the sewing machines were imported for use in manufacture, rather than for trade purposes, was treated as a plausible construction of the exemption clause and was accepted. On that basis, the exemption applied and the confiscation and penalty orders based solely on non-compliance with the marking requirement could not be sustained.

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Issues: Whether the respondent was entitled to the exemption from marking the country of origin on the imported goods under the relevant notification and, consequently, whether confiscation and penalty could be sustained.

Analysis: The imported sewing machines were subject to the country-of-origin marking requirement under Section 117 of the Trade and Merchandise Marks Act, 1958 and the notification issued thereunder. The Court accepted the Tribunal's reading of the exemption clause, holding that the respondent partnership firm could fall within the exempted category on the facts found. The Tribunal's view that the goods were imported for use in manufacture and not for trade purposes was treated as a plausible construction of the exemption.

Conclusion: The respondent was entitled to the benefit of the exemption, and the confiscation and penalty orders could not be sustained.

Ratio Decidendi: Where the exemption clause in a marking notification reasonably covers the importer on the facts, a plausible interpretation by the Tribunal will not be interfered with, and confiscation or penalty based solely on non-compliance with the marking requirement cannot stand.

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