Strict construction of exemption notifications excludes education cess and secondary education cess from Notification No. 56/2002-C.E.

Notification No. 56/2002-C.E. was confined to the duties expressly covered by its text, namely the duties of excise and the additional duties mentioned in the notification. On that construction, education cess and Secondary and Higher Education Cess levied under the Finance Act, 2004 and the Finance Act, 2007 were outside its scope and could not be treated as exempt. The analysis applies the principle that exemption notifications must be strictly construed according to their express language, and contrary Tribunal views were disregarded because they did not consider the relevant Supreme Court authority.

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Issues: Whether Notification No. 56/2002-C.E. exempted education cess and Secondary and Higher Education Cess levied under the Finance Act, 2004 and the Finance Act, 2007.

Analysis: The exemption notification was construed as extending only to the duties specifically covered by its terms, namely the duties of excise and the additional duties mentioned therein. Following the binding view that exemption notifications must be confined to their express language, the cess levied under the Finance Acts could not be brought within the scope of the notification. The contrary Tribunal decisions were not followed because they had not considered the Supreme Court authority on the point.

Conclusion: Notification No. 56/2002-C.E. did not exempt education cess or Secondary and Higher Education Cess.

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